Phoenix-Area Homeowners View Home as an Asset, Look for Ways to Increase Value

Bank of America Survey Reveals Locals Seek Financial Benefits of Homebuying

April 12, 2017 at 9:00 AM Eastern

Experienced buyers in the Phoenix metro area are more likely to view their home as a financial asset rather than an element of their personality, according to the second annual Bank of America Homebuyer Insights Report. When asked how to best describe their current home, more local homeowners (49 percent) than those nationally (36 percent) and any of the 10 markets surveyed said a financial investment. Fewer than three in 10 said a reflection of their personality.

The report, a study exploring homebuying perceptions and behaviors among adult consumers, also found that amid rising rental rates across the country, 87 percent of Phoenix-area homebuyers believe owning is more affordable than renting. In fact, nearly half of current Phoenix owners purchased their first home because they thought money spent on rent would be better invested toward a mortgage.

Phoenix-specific highlights from the report include:

Experienced owners in Phoenix see benefits of homeownership, most likely to invest in home

Current owners in Phoenix (89 percent) overwhelmingly say homeownership has a positive impact on their long-term financial picture.
Only 29 percent of Phoenix homeowners say a home’s value is determined by how much it cost to purchase, but they are increasingly investing in this asset. Ninety percent look for ways to make their home more valuable, higher than any market surveyed, and 75 percent spend a lot of free time working on their home.
Beyond financial value, experienced local buyers also see clear emotional benefits of homeownership, as nearly all are proud of owning their home (96 percent) and treasure the memories they have made (91 percent).

Aspiring Phoenix homeowners are planning ahead

Although they are juggling a variety of financial responsibilities, including paying off debts and bills (68 percent) and improving credit scores (62 percent), nearly half of prospective buyers in Phoenix say saving for a home is a major priority.
Thirty-nine percent of Phoenix residents say they will buy their first home within the next two years, and 23 percent have started to plan for a down payment.
Local first-time buyers are open to support. Sixty-two percent think they would qualify for a down payment assistance program, and 75 percent say they would take advantage of these programs.

Motivations to purchase among Phoenix homebuyers

When making the decision to buy their first home, prospective homeowners are motivated by having the financial means to purchase (56 percent), thinking money spent on rent would be better invested toward a mortgage (49 percent) and wanting a place to call their own (41 percent).
In line with the aspiring homeowners in their area, current Phoenix owners bought their first home because they had the financial means to purchase (53 percent), believed money spent on rent would be better invested toward a mortgage (47 percent) and wanted a place to call their own (44 percent).

Phoenix owners reflect on their homebuying experience

When Phoenix homeowners decided to buy, 49 percent got prequalified, which is more than the national average (39 percent) and any other market surveyed. They also engaged a real estate professional (55 percent) and set a budget (34 percent).
In looking back at their homebuying experience, local homeowners’ advice includes: start saving for a home early (65 percent), consider the maintenance costs and unexpected expenses (44 percent), and create and stick to a budget (33 percent). One-quarter say buy a home sooner to start building equity.

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.

Visit the Bank of America newsroom and register for news email alerts.

www.bankofamerica.com

###

Reporters May Contact:
Susan Atran, Bank of America
Phone: 1.646.743.0791
susan.atran@bofa.com

Categories

Social community guidelines Privacy Security Site map

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation, offer or solicitation for the purchase or sale of any security, financial instrument, or strategy. Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue.

Content contained herein may have been produced by an outside party that is not affiliated with Bank of America or any of its affiliates (Bank of America). Opinions or ideas expressed are not necessarily those of Bank of America nor do they reflect their views or endorsement. These materials are for informational purposes only. Bank of America does not assume liability for any loss or damage resulting from anyone's reliance on the information provided. Certain links may direct you away from Bank of America to an unaffiliated site. Bank of America has not been involved in the preparation of the content supplied at the unaffiliated sites and does not guarantee or assume any responsibility for its content. When you visit these sites, you are agreeing to all of their terms of use, including their privacy and security policies.

Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp.”). MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of BofA Corp.

Trust and fiduciary services are provided by Bank of America Private Bank, a division of Bank of America, N.A., Member FDIC, and a wholly-owned subsidiary of Bank of America Corporation (“BofA Corp.”). Insurance and annuity products are offered through Merrill Lynch Life Agency Inc. (“MLLA”), a licensed insurance agency and wholly-owned subsidiary of BofA Corp.

Investment products offered through MLPF&S and insurance and annuity products offered through MLLA:

Are Not FDIC Insured	Are Not Bank Guaranteed	May Lose Value
Are Not Deposits	Are Not Insured by Any Governmental Agency	Are Not a Condition to Any Banking Service or Activity

Bank of America" is the marketing name for the global banking and global markets business of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation ("Investment Banking Affiliates"), including, in the United States, BofA Securities, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Merrill Lynch Professional Clearing Corp., all of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA.

Company goals are aspirational and not guarantees or promises that all goals will be met. Statistics and metrics included in our ESG documents are estimates and may be based on assumptions or developing standards.

Connect with us