Survey: First-timers and Hispanics Ready To Buy Homes

New research released by TD Bank indicates that nearly one-in-five potential first-time homebuyers are actively looking; nearly two-thirds would like to provide a sizable downpayment of 20 % or more.

CHERRY HILL, N.J. – July 15, 2015 – In the recent past, many first-time homebuyers shied away from the market due to debt and stagnant wages. But new research released by TD Bank indicates that nearly one-in-five potential first-time homebuyers are actively looking; nearly two-thirds would like to provide a sizable downpayment of 20 percent or more.

The TD Bank First-Time Home Buyer Pulse found that 62 percent of potential first-time homebuyers think they will purchase a home within the next two years. Among millennial survey respondents, it rises to 67 percent.

What first-time homebuyers seek

68 percent of consumers looking for a first home want move-in ready, while one-third would like to buy a fixer-upper
43 percent of consumers want a suburban area; 20 percent want a home in a big city
With amenities, respondents are most interested in a backyard or pool and an attractive design, followed by energy efficient / smart homes technologies

First-time buyer financing

The top four financing options include cash savings, a 30-year mortgage, an affordability program and government loan
62 percent would like to provide a downpayment 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 homebuyers of other generations (49 percent)
Potential first-time homebuyers value mortgage rates the most when looking for a home

Barriers to homeownership

When asked what is preventing them from purchasing their first home, respondents most often cited money for a downpayment (64 percent) and the need to pay down existing debt (45 percent)
70 percent of millennials said they need to save for a downpayment; 52 percent said they need to pay down debt
22 percent said they couldn't find a home in their price range

Hispanic first-time homebuyers

Hispanic first-timers are keeping their options open in terms of how they plan to purchase their first home. The top three: cash savings, 30-year mortgage and affordability programs
46 percent if Hispanics are more likely than the general population (38 percent) to consider affordability programs
71 percent will buy their first home with a spouse/partner, compared with 56 percent of the general population

First-time Hispanic buyer home preferences

62 percent of Hispanics are interested in a move-in ready home
32 percent prefer a home in a big city or urban area, compared with 20 percent of the general population
The top three amenities that Hispanic first-time homebuyers seek: a backyard or pool, an attractive design, and close proximity to water and green spaces

Hispanics roadblocks to purchasing

The top four roadblocks preventing Hispanics from buying their first home include saving money for a downpayment, paying down debt, steady employment and finding a home in their price range
In addition, 22 percent of Hispanics feel like they can't find a home that meets their needs and wants
46 percent plan to buy their first home in the next one to two years; 38 percent plan on purchasing in the next three to five years

Survey methodology
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. Vision Critical hosted the survey.