Big Jump in Number of Americans Planning to Buy a Home in the Next Five Years: BMO Harris Bank Home Buying Report

News provided by

May 01, 2017, 08:00 ET

Over half (54 percent) of Americans say they are likely to buy a home in the next five years, up 12 percent compared to the results of last year's survey
Over three quarters of buyers set a budget before beginning their home search and stick
Ninety percent of prospective first-time buyers are or plan to get preapproved for a mortgage before making an offer on a home

CHICAGO, May 1, 2017 /PRNewswire/ - Just over half (54 percent) of Americans say they are likely to buy a home in the next five years – up 12 percent from last year – according to the 2017 BMO Harris Bank Homebuyers Report. In addition, Americans surveyed are willing to pay an average of $277,000 for a home and will average a 32 percent down payment.

The report, conducted by Pollara, also found that:

Among likely first-time buyers, 80 percent plan to get preapproved before making an offer and 10 percent are already preapproved
Around four-in five will set a budget before looking for a home
The majority (65 percent) of those looking to buy a new home will consult a real estate agent, while 61 percent said they will visit online real estate websites and 38 percent will seek recommendations from friends and family

"Future buyers are encouraged about their prospects for a home purchase in the near future, and they're keeping a healthy budget top of mind," said Steven Zandpour, Senior Vice-President and Head of Retail Banking for Chicago Metro North, BMO Harris Bank. "Home ownership is a fulfilling goal for many and it doesn't have to be a cumbersome process. Our mortgage specialists aim to walk each of our customers through each step, helping them along the journey and understanding what matters to them the most."

According to the report, 70 percent of American homeowners spent six months or less looking for a new home before they made a purchase. In addition, 10 percent bought their home without participating in an active real estate search – or even any plan to buy at all – because a specific property caught their attention.

The report also found that Millennials (the generation born between 1982 and 2004) are more likely to use a mobile device as a resource to help in their home search (37 percent). In addition, Millennials are more likely than older age groups to rely on recommendations from friends and family (45 percent) when conducting a home search.

To learn more about home buying and for resources to help consumers in their search, visit: www.bmoharris.com/YourFinancialLife.

The survey results cited in the BMO Harris 2017 Home Buying Report, conducted by Pollara, are compiled from a random sample of 2,505 Americans 18 years of age and over between March 13 and March 20, 2017. A probability sample of this size would yield results accurate to ± 1.96 per cent, 19 times out of 20.

About BMO Harris Bank
BMO Harris Bank provides a broad range of personal banking products and solutions through nearly 600 branches and almost 1,400 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. For more information about BMO Harris Bank, go to the company fact sheet. Banking products and services are subject to bank and credit approval. BMO Harris Bank N.A. Member FDIC. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with approximately 1,500 branches, and CDN $692 billion in assets (as of January 31, 2017).