Survey: Media Not Main Motivation Behind Home Buying, Mortgage Applications

What factors motivate individuals to consider a new home?

It’s an intriguing question, one recently posed by the National Association of Hume Builders (NAHB) in a poll of 2,000 households. The goal was to determine what inspires consumers to think about buying or selling a home.

Specifically: how large of a roll does the media play in this process?

The vast majority, 80 percent of survey respondents, put housing prices an the cost of housing, at the top of the list.

According to The Realty Times, that was followed by:

• The prospect of selling their current home at a fair price, 70 percent.

• The potential for a home to increase in value, 71 percent.

• Mortgage interest rates, 69 percent.

• Personal life changes, such as a new job or a family addition, 60 percent.

Among eight items, news reports was at the bottom of the list. People may read stories about the future of the housing market, but actively seeking out properties and comparing prices appear to be more pertinent.

Moreover, 48 percent of consumers surveyed said the media had no influence whatsoever on their buying decision; 19 percent of consumers said the influence of the news media played an important role in buying decisions; 23 percent said it had some importance and 7 percent said it played a minor role.

NAHB polling has also found that 81 percent of homeowners believe that the value of their homes will rise over the next five years, while only 13 percent believe their home will depreciate, 4 percent expected no change and 3 percent were not certain.

“The media provides an important service by giving consumers the big picture of what is occurring in the housing marketplace, even the big picture in their local markets,” said NAHB President David Pressly, a home builder from Statesville, N.C. “But despite that, local reporting can’t convey the information that consumers consider the most when they are looking for a new home.”