Survey: Home buyers face competition in current market, but most are cool with that

Home buyers continue to face competition in the market according to a new survey from Provident Bank, which has branches throughout the Greater Lehigh Valley. 

But the survey also shows that most are OK with that. 

According to the bank’s survey of recent home buyers, 61% said they competed in at least one bidding war during their home search. 

Most of those said their winning offer was at or above asking price with more than 25% saying it was more than 10% hire. Still, 70% of respondents reported a positive buying experience. 

“Our survey showed that first-time home buyers have not been scared off by the competitive housing market,” said Tony Labozzetta, president & COO, Provident Bank. “The research shows that motivators to move are largely quality of life factors like better neighborhoods, better schools, job relocation or transfer. The good news is that most have been pleased with the overall home buying process despite the competitive market.” 

The survey also found that recent buyers are offering lower down payments. 

Despite most respondents saying they offered less than 20% for a down payment, they had no difficulty obtaining a mortgage.  

Mortgage rates are still historically low for many recent home buyers, with 31% saying their rate is between 2% and 3%. 

Other findings in the survey showed that around 75% of home buyers did at least half of their home shopping in-person, while 25% did most of their home shopping online. 

More than half, 55% said they think they overpaid for their home, however, 44% of respondents said they do not regret buying in the current market.