In the latest Home Index Survey, 43 percent of move-up buyers indicated they are planning to purchase a new home within the next five years. Â Additionally, showing further confidence in the housing market recovery, 76 percent believe they can sell their current home within the next two years for a price that would allow them to move to a new home.Â The survey polled adults who have owned a home for at least two years, have children under the age of 18, and have an income of more thanÂ $50,000.
"One of the most intriguing findings from this survey is the optimism and the willingness of homeowners to 'pull the trigger' on buying a new home, even if they may not have an immediate need to move," saidÂ Deborah Wahl, senior vice president and chief marketing officer for PulteGroup, Inc. Â "The move-up buyer represents a significant opportunity for Pulte Homes. Â It's critical we continue to understand this buyer and the economic and life-stage factors that spur them to purchase a new home."
While a change in life stage, such as the birth of a new baby or the need to downsize, remains a common trigger for purchasing a new home, the PGHI survey showed that financial and economic indicators are more likely to spur buyers to move up the timeline to purchase a new home.
Other factors that would make homeowners move up their timeline include:
- Selling a home at a higher price point (38 percent)
- Relocating for a job (24 percent)
- Job promotion or new job (17 percent)
- New baby and/or family members moving in (11 percent)
Millennials Responding to Favorable Housing Market Faster than Other Age Groups
According to Wahl, the actions of the millennial buyer could further propel housing demand. Â Of the three largest consumer segmentsÂ -- millennials (ages 18-34), GenÂ X (ages 35-54) and baby boomers (55+)Â -- millennials are the generation taking action and responding to the housing and financial markets faster than other age groups.
According to this survey, of the millennials who already own a home, 38 percent are planning to purchase a new home within the next two years. Â This increases to 58 percent within the next five years.
Due to the sheer size and influence of this segment of buyers, PulteGroup is keeping a pulse on millennials' sentiment toward homeownership. Â Research conducted earlier this year revealed that millennial renters are ready to purchase their first home. Â More than half (54 percent) of millennial renters surveyed said their intention to buy a home has somewhat or significantly increased in the past year.