BLOOMFIELD HILLS, Mich., May 1, 2014 /PRNewswire/ -- For a majority of Americans, their outlook on today's economy is brighter and their attitude toward buying a home is trending positive, according to the latest PulteGroup Home Index Survey (PGHI) by PulteGroup, Inc. (NYSE: PHM), one of the nation's largest homebuilders.
As 74 percent of adults feel the economy has remained steady or improved in the last year, this confidence is impacting overall purchasing behavior with 57 percent of adults thinking now is a good or excellent time to purchase the items they want or need.
Specifically, their appetite for entering the housing market is improving. The survey revealed that 67 percent of respondents plan to purchase a home in the future, of which 32 percent are looking to buy within the next two years. Millennials and move-up buyers represent the most engaged consumer segments, 85 percent and 71 percent, respectively, intending to purchase a home in the future. Consistent with past PulteGroup baby boomer surveys and national trends, 50 percent of those aged 55 and older are looking to purchase a home in the future.
"For the first time in years, Americans have a growing sense of optimism that the housing market is improving, and that these positive changes may be sustainable," said Margaret Gramann, senior vice president of sales for PulteGroup, Inc., which builds homes under the Centex, Pulte Homes and Del Webb brands. "This favorable outlook is giving them the confidence to pursue more meaningful, big-picture life opportunities they may have otherwise put on hold."
According to Gramann, buyer optimism has translated into good traffic throughout its communities, with buyers who are willing to write contracts. In its first quarter financial results, the Company reported absorption paces were up for its Del Webb and Centex business; brands that cater to the baby boomers and millennials.
Home Purchase Behavior
According to the survey, there are two main drivers to purchasing a home: the need for more space and the view that owning a home is a smart financial investment. In fact, 70 percent of home shoppers plan to spend more or as much money on their next home, and 64 percent prefer to spend more on a home that's move-in ready rather than spend less and renovate. Additionally, a majority of adults who plan to spend more on their next home indicate it is not only to increase the size of the home (56 percent), but to upgrade its finishes (51 percent).
"Whether it's a first-time or move-up buyer, or an active adult, purchasing a home is a major life decision and Americans are recognizing the importance of maximizing what they view as a long-term investment," said Gramann. "They're aiming to create value in a home that meets their specific wants and needs from day one, and if that means spending more money, they're willing to do so because of confidence in the market."
Accelerating Home Purchase Timelines
The pursuit of home ownership has trended upwards over the last year, as a considerable percentage of adults (41 percent) indicate their interest in purchasing a home has increased, with millennials trending higher at 59 percent and move-up buyers at 45 percent. Personal financial situations are a key motivator for adults to accelerate their timeline for a home purchase. Specifically,
- 25 percent of prospective homebuyers would move up their purchasing timeline if they had access to down payment funds/a mortgage sooner
- 21 percent would move up their timeline if they were able to sell their current home at a higher price point/break their lease without penalty
- 50 percent of current homeowners believe they could currently sell their home at a price that would allow them to move to a new property
About the PulteGroup Home Index (PGHI) Survey
The PulteGroup Home Index (PGHI) survey polled 1,004 U.S. adults ages 25 – 65 to better understand their sentiment about the U.S. economy and how current housing conditions is impacting future homebuyers. The survey was conducted online by Russell Research from February 18 – 25, 2014. Findings for the total sample are projectable to the universe of online adults. At a 95 percent confidence level, a margin of sample error of +/- 6.5 percent applies to the sample.
About PulteGroup, Inc.
PulteGroup, Inc. (NYSE: PHM), based in Bloomfield Hills, Mich., is one of America's largest homebuilding companies with operations in approximately 50 markets throughout the country. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb and DiVosta Homes, the company is one of the industry's most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup conducts extensive research to provide homebuyers with innovative solutions and consumer inspired homes and communities to make lives better.
For more information about PulteGroup, Inc. and PulteGroup brands, go to pultegroupinc.com; www.pulte.com; www.centex.com; www.delwebb.com and www.divosta.com. Follow PulteGroup, Inc. on Twitter: @PulteGroupNews.
SOURCE PulteGroup, Inc.