Millennials are the most optimistic about the state of the U.S. real estate market, while most American express favorable opinions about housing, according to Berkshire Hathaway HomeServices’ Homeowner Sentiment Survey.
Seventy-four percent of millennials reported a favorable view of the housing market, representing an increase of 15 percentage points from a year ago, Berkshire Hathaway HomeServices said Tuesday. Nationwide, 66% of current homeowners and 63% of prospective homeowners had a favorable view of the real estate market.
Among Gen-Xers, who are between the ages of 35 and 50, 67% viewed the real estate market favorably, up eight percentage points from a year ago.
“People feel good about real estate because housing is doing well in many markets across America,” Gino Blefari, CEO of Berkshire Hathaway HomeServices, said in a news release. “Although the idea of a rate hike can grab headlines and initially create some unease, it’s important to remember rate increases are often the mark of an improving, healthy U.S. economy. That is the case today.”
Indeed, most people viewed interest rates as an issue: 76% of current homeowners and 79% of prospective homeowners said increasing interest rates would represent a challenge to the real estate market.
Where there is a divide in sentiment is on the personal impact of these increases. Among prospective buyers, 70% communicated that they would feel anxious if interest rates rose versus just 44% of current homeowners.