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Homebuyers prefer new properties over used

Posted on Wednesday, May 7, 2014 at 10:08:36 AM

When it comes time to acquire residential financing and start the homebuying process, people generally have two options of properties to choose from: new or existing. Based on a recent Trulia survey of more than 2,000 Americans, twice as many are leaning toward newly built options.

According to Trulia, 41 percent of the survey participants noted that they have a strong or moderate preference for new properties over existing ones. This is compared to only 21 percent of respondents stating that they strongly or somewhat prefer the exact opposite. The remaining 38 percent didn't have a preference.

Even so, only 46 percent of the new home crowd were willing to pay at least 20 percent more to end up in that type of property, Trulia reported. When this is skewed toward a younger generation, the numbers increase. More people between the age of 18 to 34 strongly wanted a new home and were willing to pay more to get it.

Thankfully, there is good economic news on the horizon for homebuyers who want better finances before making the move. Recently, Federal Reserve Chair Janet Yellen spoke before the Joint Economic Committee of the U.S. Congress, and stated that the economy has continued to recover following the Great Recession. As an added bonus, the labor market has also improved.