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Denver-Area Homeowners Advise to Buy Early, View Current Home as Stepping Stone

Bank of America Survey Reveals Locals Seek Financial Benefits of Homebuying

Wednesday, April 12, 2017 9:00 am EDT

Dateline:

Denver

Denver-area homeowners see value in buying early, even if that means putting their dream home on hold for now, according to the second annual Bank of America Homebuyer Insights Report. Forty-six percent of experienced local buyers say their current home is a stepping stone to their forever home, which is more than the national average (36 percent) and any of the 10 local markets surveyed. When sharing advice on the homebuying experience, nearly one in three Denver owners say buy a home sooner to start building equity.

The report, a study exploring homebuying perceptions and behaviors among adult consumers, also found that amid rising rental rates across the country, Denver-area homebuyers
(91 percent) are more likely than all other markets surveyed to believe owning is more affordable than renting. In fact, current Denver owners were most likely to have purchased their first home because they thought money spent on rent would be better invested toward a mortgage (57 percent).

Denver-specific highlights from the report include:

Experienced Denver buyers say value goes beyond dollars and cents

  • Current owners in Denver (87 percent) overwhelmingly say homeownership has a positive impact on their long-term financial picture.

  • While they may not be in their forever home, Denverites show clear sentimental ties to their property, as 92 percent feel proud of owning and 90 percent treasure the memories they have made. Just 9 percent say owning a home is a burden, lower than any other market surveyed.

  • Only 29 percent of Denver homeowners say a home’s value is determined by how much it cost to purchase, but they are increasingly investing in this asset. Eighty-two percent look for ways to make their home more valuable, and 66 percent spend a lot of free time working on their home.

Aspiring Denver homeowners are planning ahead

  • Although they are juggling a variety of financial responsibilities, including saving for retirement (54 percent), paying off debts and bills (36 percent), and improving credit scores (36 percent), nearly half of prospective buyers in Denver say saving for a home is a major priority.

  • Thirty-two percent of Denverites say they will buy their first home within the next two years, and 41 percent say they have started to plan for a down payment.

  • Local first-time buyers are open to support. Thirty-seven percent think they would qualify for a down payment assistance program, and 66 percent say they would take advantage of these programs.

Motivations to purchase among Denver homebuyers

  • When making the decision to buy their first home, prospective homeowners are motivated by having the financial means to purchase (57 percent) and having a steady job with a steady income (40 percent). Fewer (28 percent) are influenced by wanting a place to call their own.

  • In line with the aspiring homeowners in their area, current Denver owners were influenced to buy their first home because they thought money spent on rent would be better invested toward a mortgage (57 percent) and had the financial means to purchase (50 percent). Forty-three percent bought because interest rates and home prices were favorable, higher than any other market surveyed.

Denver owners reflect on their homebuying experience

  • When Denver homeowners decided to buy, they were more likely than their national counterparts to engage a real estate professional (70 percent vs. 52 percent), get prequalified (48 percent vs. 39 percent) and set a budget (47 percent vs. 40 percent).

  • In looking back at their homebuying experience, current Denver homeowners would tell their younger selves to start saving for a home early (54 percent), consider the maintenance costs and unexpected expenses (51 percent), and create and stick to a budget (31 percent).


For additional information about the Bank of America Homebuyer Insights Report, please visit www.bankofamerica.com/homebuyersreport.


Bank of America Consumer Lending
Bank of America’s Consumer Lending unit includes First Mortgage, Home Equity, Merrill Lynch Banking, and Consumer Vehicle Lending. Each business is focused on delivering a distinctive and consistent client experience through competitive product offerings, quality loan production, choice of multiple connection and delivery methods, and operational excellence based on a client’s unique attributes and relationship with us.

About the Bank of America Homebuyer Insights Report
This survey was conducted by GfK Public Communications and Social Science, using GfK’s KnowledgePanel®, which yields results that are statistically representative and projectable to the American population. The survey was conducted online January 24–February 2, 2017. A total of 4,906 adults age 18+ were surveyed, including 1,268 current homeowners and 435 prospective homeowners. In addition, an augment was conducted to achieve 300 adults in 10 local markets: Boston, Charlotte, Chicago, Dallas, Denver, Houston, Phoenix, Miami, St. Louis, and New York. The margin of sampling error for national data is +/- 3.0 percentage points.

Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 46 million consumer and small business relationships with approximately 4,600 retail financial centers, approximately 15,900 ATMs, and award-winning online banking with approximately 34 million active accounts and nearly 22 million mobile active users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

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