Renovations Become Preferable To Saving For A Down Payment
A new study has found that folks who have reached the downsizing point in their homeownership, would rather renovate their current home than save for a downpayment.
"Across all age groups, 76% of Americans would rather use a set amount of money to pay for renovations for their current home instead of saving it to put down on a new home, the Zillow Housing Aspirations Report found," according to National Mortgage News.
"The results were starker when the demographic is limited to older Americans. Among those respondents aged 55 or older, 87% said they would prefer to renovate."
Depending on the amount of work that would be going into such renovations, most of them can end up working out cheaper that a downpayment on a new home.
"Rising mortgage rates also could be a factor," according to Zillow.
"Since the beginning of the year, rates have risen about 90 basis points, and homeowners who have a low mortgage rate may not want a new mortgage at a higher rate."
This is a dangerous combination when it comes to available inventory. If folks are less likely to put their home up for sale, chances are inventory will play a huge part in competition for the smaller number of homes that are available to prospective buyers.
To learn more about the increase in home renovations over down payments on a new home, click on the image above.