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Most buyers will go over budget for their dream home

COVID-19 Housing Market Makes Homebuyers More Willing to Go Over Budget

The coronavirus pandemic has led to favorable conditions for homebuyers due to historically low mortgage rates. However, there has been a low supply of homes available for sale, driving up demand. Housing markets across the country from Philadelphia to San Antonio to Tucson are facing tight competition, and potential homebuyers are finding themselves more willing to stretch their budget.

Online lending marketplace LendingTree commissioned an August 2020 survey of more than 1,000 prospective homebuyers and found that nearly two-thirds (64%) of homebuyers are willing to go over budget for their perfect house. Millennials in particular are willing to go over budget, with 76% of respondents ages 24 to 39 saying they would stretch their budget to buy their dream home.

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The current supply-and-demand struggle has led to higher list prices and higher chances of bidding wars among prospective buyers. According to LendingTree’s survey, current homebuyers say the most stressful part of the homebuying process is finding a home within their budget, followed by finding a home in their area amid limited inventory.

As millions of Americans continue to work from home or spend more time at home due to social distancing, some people are exploring their housing options. This includes looking for bigger, more comfortable spaces as well as homes in secondary cities or exurbs.

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