BLOOMFIELD HILLS, Mich., Aug. 2, 2013 /PRNewswire/ -- Current homeowners are optimistic about selling their home and are looking to move up their timeline to purchase a new home, according to the most recent survey by PulteGroup, Inc. (NYSE: PHM), one of the nation's largest homebuilders.
In the latest PulteGroup Home Index Survey (PGHI), 43 percent of move-up buyers indicated they are planning to purchase a new home within the next five years. Additionally, showing further confidence in the housing market recovery, 76 percent believe they can sell their current home within the next two years for a price that would allow them to move to a new home. The survey polled adults who have owned a home for at least two years, have children under the age of 18, and have an income of more than $50,000 .
"One of the most intriguing findings from this PGHI survey is the optimism and the willingness of homeowners to 'pull the trigger' on buying a new home, even if they may not have an immediate need to move," said Deborah Wahl , senior vice president and chief marketing officer for PulteGroup, Inc. "The move-up buyer represents a significant opportunity for Pulte Homes. It's critical we continue to understand this buyer segment and the economic and life-stage factors that spur them to purchase a new home."
In 2012, home closings from the Company's Pulte Homes brand, which targets the move-up buyer, represented 43 percent of PulteGroup's total closings. The move-up buyer is typically a family with young or school-aged children who already own a home.
More about Return on Investment than the New Baby
While a change in life stage, such as the birth of a new baby or the need to downsize, remains a common trigger for purchasing a new home, the PGHI survey showed that financial and economic indicators are more likely to spur buyers to move up the timeline to purchase a new home.
Other factors that would make homeowners move up their timeline include:
- Selling a home at a higher price point (38 percent)
- Relocating for a job (24 percent)
- Job promotion or new job (17 percent)
- New baby and/or family members moving in (11 percent)
Millennials Responding to Favorable Housing Market Faster than Other Age Groups
According to Wahl, the actions of the millennial buyer could further propel housing demand. Of the three largest consumer segments -- millennials (ages 18-34), Gen X (ages 35-54) and baby boomers (55+) -- millennials are the generation taking action and responding to the housing and financial markets faster than other age groups.
According to this survey, of the millennials who already own a home, 38 percent are planning to purchase a new home within the next two years. This increases to 58 percent within the next five years.
Due to the sheer size and influence of this segment of buyers, PulteGroup is keeping a pulse on millennials' sentiment toward homeownership. Research conducted earlier this year revealed that millennial renters are ready to purchase their first home. More than half (54 percent) of millennial renters surveyed said their intention to buy a home has somewhat or significantly increased in the past year.
About the PGHI Survey
The PulteGroup Home Index (PGHI) survey polled 516 U.S. adult homeowners with children under the age of 18 and an annual income greater than $50,000 to better understand their interest and propensity to purchase a move-up home. The survey was conducted online by Russell Research from May 31 – June 4 , 2013. At a 95 percent confidence level, the results have a statistical precision of +/- 4.3 percentage points of what they would be if the entire adult population had been polled with complete accuracy. Figures for gender, age and geography were weighted where necessary to match their actual proportions in the population.
About PulteGroup, Inc.
PulteGroup, Inc. (NYSE: PHM), based in Bloomfield Hills, Mich. , is one of America's largest homebuilding companies with operations in approximately 50 markets throughout the country. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb and DiVosta Homes, the company is one of the industry's most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup conducts extensive research to provide homebuyers with innovative solutions and consumer inspired homes and communities to make lives better.