CHERRY HILL, N.J., July 14, 2015 /PRNewswire/ -- In the past many first-time home buyers may have shied away from entering the market due to debt and stagnant wages, new research released by TD Bank, America's Most Convenient Bank®, indicates that nearly one-in-five potential first-time home buyers are actively looking to buy and nearly two-thirds would like to provide a sizable down payment of 20 percent or more. The bank polled more than 1,000 Americans looking to purchase their first home within the next five years.
The TD Bank First-Time Home Buyer Pulse also revealed that 62 percent of potential first-time home buyers think they will purchase a home within the next two years. Among millennial survey respondents, this number rises to 67 percent.
"It's encouraging to see interest from the first-time home buyers, who have been cautious for much of the housing recovery," said Scott Haymore, Head of Pricing and Secondary Markets, TD Bank. "Consumers are gaining confidence in the economy and many are looking to enter the housing market within the next two years."
What First-Time Home Buyers Look for in a Home
- More than two-thirds of consumers (68 percent) looking to purchase their first home are interested in move-in ready homes while one-third would like to buy a fixer-upper.
- Forty-three percent of consumers are looking to purchase their first home in a suburban area outside of a city compared to 20 percent that want a home in a big city or metro area.
- When it comes to amenities, respondents are most interested in their first home having a backyard or pool and an attractive design, followed by energy efficient / smart homes technologies.
First-Time Home Buyer Financing Plans
- The top four financing options first-time buyers consider include cash savings, 30-year mortgage, and an affordability program and government loan.
- Sixty-two percent of respondents would like to provide a sizable down payment of 20 percent or more.
- Millennials are more likely to purchase their first home with a partner or spouse (70 percent) compared to potential first-time home buyers of other generations 49 percent
- Potential first-time home buyers value mortgage rates the most when looking for a home.
"First-time home buyers are keeping their options open in terms of how they plan to purchase their first home," said Haymore. "The right lender will help first-time buyers understand what they can afford and share information on the different loan options available."
Barriers to Homeownership
- When asked what is preventing them from purchasing their first home, respondents most often cited needing to save money for a down payment (64 percent) and needing to pay down debt (45 percent).
- For millennials, the entry to homeownership is even tougher: 70 percent of millennial respondents said they need to save for a down payment and 52 percent said they need to pay down debt.
- More than one-in-five consumers (22 percent) looking to purchase their first home noted that they can't find a home in their price range.
"Buyers today may find it difficult to save for a large down payment, especially young adults who are saddled with substantial student loan debt," said Haymore. "The great news is, today many lenders are offering home affordability and down payment assistance programs so it's important to shop around for a mortgage and learn more about the options available."
Additional highlights from the TD Bank First-Time Home Buyer Pulse are available at http://mediaroom.tdbank.com/homebuyer.
The study was conducted from June 11 – June 16, 2015 among a nationally representative group of consumers who are not currently homeowners and are considering purchasing a home in the next five years. The sample size of 1,002 has a margin of error of +/- 3.1 percent. Data has been weighted by age, gender and region to reflect the populations. The survey was hosted by Vision Critical.
About Vision Critical
Vision Critical provides a cloud-based customer intelligence platform that helps companies build engaged, secure communities of customers they can use continuously, across the enterprise, for ongoing, real-time feedback and insight.
About TD Bank, America's Most Convenient Bank®
TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S., providing more than 8 million customers with a full range of retail, small business and commercial banking products and services at approximately 1,300 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Bank and its subsidiaries offer customized private banking and wealth management services through TD Wealth®, and vehicle financing and dealer commercial services through TD Auto Finance. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit www.tdbank.com. Find TD Bank on Facebook at www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD". To learn more, visit www.td.com.
SOURCE TD Bank