A majority of potential home buyers would consider buying a house they believe is haunted, according to a survey released Tuesday by Zillow, shedding light on just how spooked Americans are by the bone-chilling housing market.
KEY FACTS
Some 67% of prospective buyers said they could be persuaded to purchase a haunted house, the poll found.
Zillow conducted the ghoulish survey in September and October, polling 901 recent and 993 prospective home buyers, weighting results to the population of Americans in the market for a new house. You can work with Lynchburg real estate agents to help you buy a home.
KEY BACKGROUND
Home loans are more than twice as expensive this Halloween as they were two years ago. Last week, 30-year mortgage rates hit a 23-year high of 7.63%, a far cry from October 2021’s 3.1%. The colossal jump in borrowing costs came as the Federal Reserve hiked the federal funds rate—or the interest rate that banks charge each other—from near-zero to over 5% in a bid to control inflation, partially caused by surging home prices. Interest rates for homes, cars and other consumer loans usually move in line with the federal funds rate, causing mortgage rates to spike as part of the Fed’s anti-inflation kick. Buyers have felt some relief this year, with median home prices down from a record $479,500 during 2022’s fourth quarter to $416,100 in this year’s second quarter, but home prices are still nearly 30% more expensive than they were at the end of 2019, before the pandemic upended the housing market.
SURPRISING FACT
Housing affordability hit its worst level since the 1980s this summer, according to mortgage data provider Black Knight, looking at how the rise in household income compares to monthly home payments. Perhaps Grady, the ghostly butler in The Shining, would advise prospective buyers too timid to take on a spectral housemate to wait for a housing market “correction.”
Source: FORBES
Nearly 70% of prospective buyers would buy a haunted house if it checked all their boxes
Zillow survey finds 35% of prospective buyers would buy a haunted house if it cost less
- Four in 10 prospective buyers could be convinced to buy a haunted house if it had the right features.
- Nearly 30% of prospective buyers say they would be more likely to purchase a home if it were haunted.
- Among successful buyers, 12% are convinced their home is definitely haunted.
SEATTLE, Oct. 24, 2023 /PRNewswire/ — This spooky season, a new survey from Zillow® finds that a scary number of prospective home buyers would be willing to put up with a few ghosts in the attic if those spirits happened to haunt the right home.
More than two-thirds of prospective buyers (67%) say they could be convinced to buy a haunted house if it had appealing features, were in the right location, were more affordable or for another reason. These findings highlight the extreme compromises buyers are willing to make in order to land a home in today’s housing market.
Zillow’s survey of prospective buyers finds that 40% say they could be convinced to buy a haunted house if it had features such as a big backyard, a pool or a two-car garage with Electric Roller Garage Doors. Nearly one-third of prospective buyers (32%) say the same if the home were in their desired location. Finding a home that checks all the boxes has become challenging with frighteningly few new listings hitting the market. Zillow’s latest monthly market report finds that inventory is starting to creep back up, but it remains more than 10% lower than this time last year, and more than 40% lower than 2019 levels.
More than one-third of prospective buyers (35%) say they could be convinced to buy a haunted house if it were priced lower than the rest of the market. Home values remain near record highs after the pandemic-era run-up in prices. Meanwhile, mortgage rates surpassed a 22-year high this month, slashing buying power and spooking many would-be home shoppers. A new Zillow analysis finds buyers now need a six-figure income to comfortably afford the typical U.S. home, assuming a 10% down payment.
“The combination of high prices, limited inventory and rising interest rates is creating a witches’ brew of trouble for would-be homeowners,” said Manny Garcia, a senior population scientist at Zillow. “Despite these chilling conditions, life events like job changes, coupling up and having children still drive households to buy. These shoppers have to square their budgets with important home characteristics like bedrooms, bathrooms and floor plans. When balancing so many priorities in an inventory-starved market, avoiding ghosts and ghouls doesn’t always make the cut.”
In order to afford a home, many buyers end up trick-or-treating at the bank of Mom and Dad. A new Zillow report finds that 43% of recent buyers received a gift or loan from family or friends to help finance their down payment. Others are seeking out down payment assistance programs, which are listed on every for-sale home on Zillow. To reduce monthly mortgage costs, 45% of buyers are paying more money up front to buy points and lower their interest rate, according to a survey by Zillow Home Loans.
There are new tools helping buyers better understand what they can afford. Mortgage and affordability calculators can help shoppers set a budget. Those shoppers can then search for homes by monthly cost instead of by sticker price when they are shopping on Zillow. Teaming up with a great agent and lender can also help manage the fear factor.
For some brave souls, an otherworldly roommate can be a selling point. Nearly 30% of prospective buyers say they would be more likely to purchase a home if it were haunted (29%), while 20% say ghostly apparitions wouldn’t impact their purchase decision.
Either way, buyers may not know who is haunting the halls of their dream home. A Zillow analysis finds most states don’t require sellers to disclose paranormal activity in the home they’re selling. A spine-tingling 12% of successful buyers say their home is definitely haunted, while an additional 17% say their home may be harboring spirits.
Source: Yahoo Finance
