Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nyse  >  Berkshire Hathaway    BRK.A

My previous session
Most popular
News SummaryMost relevantAll newsOfficial PublicationsSector newsTweets

Berkshire Hathaway : Consumers are Navigating Tides of the U.S. Real Estate Market in Berkshire Hathaway HomeServices' Latest Homeowner Sentiment Survey

share with twitter share with LinkedIn share with facebook
share via e-mail
10/05/2017 | 09:03pm CEST

By a News Reporter-Staff News Editor at Real Estate Weekly News -- Homeownership remains a priority for younger consumers despite tight housing inventory and stiff competition for homes - conditions that are driving up prices in many markets. In Berkshire Hathaway HomeServices' latest Homeowner Sentiment Survey released, a full 71% of prospective homeowners - a demographic composed largely of Millennials - believe now is a good time to buy a home and 63% remain steadfast in their ideal preferences for a home.

Not surprisingly, consumers are gaining a deeper understanding of market conditions: 72% of prospective homebuyers acknowledge that homebuying has become increasingly competitive with a shortage of listings in many markets across the U.S.; 76% of prospective Millennial buyers expressed concern of overpaying for a home; and 76% said finding a competitively priced home is a challenge.

Several factors have contributed to the current housing shortage in many markets. For starters, new construction ground to a halt during the Great Recession while population growth and household formation continue to blossom. Builders are increasingly hitting stride on new construction projects in a wider range of price points but demand still outstrips supply in markets such as Miami, Philadelphia, Chicago, Los Angeles and San Francisco. The vast Baby Boomer generation has contributed to the shortage as many are reluctant to sell. In the survey, 73% of Boomers said they hesitate to list their homes because home values are rising. Another factor reflects convenience. Four out of five Boomers said they would rather not shop for a new property at the moment.

"The world seems to be waiting on Millennials to make a move in all facets of their lives," said Gino Blefari, president and CEO of Berkshire Hathaway HomeServices. "Our data suggests younger generations remain very positive about homeownership and remain in the game in markets where competition for good, reasonably priced homes can be tough."

Blefari said rising home prices likely will move more Boomers off the fence as they retire, downsize and move to other markets. "Home values have mostly recovered from the downturn and homeowners may have more equity than they're aware," he explained. "Equity gives people latitude to make important changes in their lives." Buyers Stand Apart with Creativity Increased competition has sparked creativity among consumers looking to stand apart in the market.

45% of prospective homeowners say they are willing to cover closing costs.

36% of Millennial buyers will send a personal letter to sellers.

58% of Millennials said they would plunk down more of an earnest deposit to show their commitment to sellers.

31% of Millennials indicated they would offer above asking price to secure their home.

"Sure, it can be competitive to secure a good, reasonably priced home," Blefari said. "To win, consumers must work with a skilled agent who understands the market and will recommend the best ways to secure a home at a fair price." Fueling Optimism Overall, consumer favorability toward real estate and its prospects remains high, as lower mortgage rates and the prospects of rising home values continue to buoy enthusiasm. A full 72% of current homeowners expressed a favorable feeling toward the real estate market, with 51% pointing to low mortgage rates and 44% citing price appreciation for their optimism. Respondents also showed a greater understanding of mortgage rates with 61% of prospective buyers and 63% of current homeowners expressing confidence in their knowledge of current rate levels, jumps of 2 and 4 percentage points, respectively, from the spring Homeowner Sentiment Survey.

"Historically low mortgage rates continue making homeownership achievable for many Americans," said Blefari. "We believe mortgage rates will remain within a range of current low levels for the foreseeable future." Berkshire Hathaway HomeServices Homeowner Sentiment Survey Methodology Interviews with 2,518 respondents were conducted online by Edelman Intelligence in July 2017. Respondents captured were either current homeowners (individuals who currently own a home as a primary residence) or prospective homeowners (individuals who do not currently own a home and are likely to buy a home as their primary residence in the next six months). The margin of error is +/-2.18% for current homeowners and +/- 4.38% for prospective homeowners.

The full survey details are available upon request. About Berkshire Hathaway HomeServices Berkshire Hathaway HomeServices, based in Irvine, CA, is a real estate brokerage network built for a new era in real estate. The network, among the few organizations entrusted to use the world-renowned Berkshire Hathaway name, brings to the real estate market a definitive mark of trust, integrity, stability and longevity. Visit www.berkshirehathawayhs.com. View source version on businesswire.com: http://www.businesswire.com/news/home/20170926006266/en/

Keywords for this news article include: Real Estate, Homeownership, Mortgage Rates, Berkshire Hathaway HomeServices.

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2017, NewsRx LLC

(c) 2017 NewsRx LLC, source Business Newsletters

share with twitter share with LinkedIn share with facebook
share via e-mail
09/25Iberdrola plans to boost U.S. renewable power by about 50 percent - CEO
09/18BERKSHIRE HATHAWAY : Does buying small caps make one penny-wise and pound foolis..
09/17Is Tesla or Exxon More Sustainable? It Depends Whom You Ask
09/17BERKSHIRE HATHAWAY : Miller rejoins Berkshire Hathaway Homeservices Floberg Real..
09/12BERKSHIRE HATHAWAY : Street dogs
09/11BERKSHIRE HATHAWAY : Buffett backs housing market with London property agent par..
09/10BERKSHIRE HATHAWAY : Comcast weighs in on health care
09/06BERKSHIRE HATHAWAY : HomeServices Applauds Eight Network Agents Honored with the..
09/05Amazon, Berkshire, JPM name COO of healthcare company
09/04Amazon, Berkshire, JPMorgan's healthcare venture names COO
More news
News from SeekingAlpha
09/24LEE ENTERPRISES : Implications Of The Berkshire Hathaway Deal 
09/23Energize Your Portfolio? 
09/23The 3 Essential Investing Lessons Of The Financial Crisis 
09/23Is The Great Rotation Into Equities After A 37-Year Run In Bonds Finally Upon.. 
09/19My Quarterly Global Portfolio Update 
Financials ($)
Sales 2018 248 B
EBIT 2018 31 532 M
Net income 2018 25 129 M
Debt 2018 -
Yield 2018 -
P/E ratio 2018 21,44
P/E ratio 2019 18,58
Capi. / Sales 2018 2,17x
Capi. / Sales 2019 2,02x
Capitalization 539 B
Duration : Period :
Berkshire Hathaway Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends BERKSHIRE HATHAWAY
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 5
Average target price 362 750 $
Spread / Average Target 10%
EPS Revisions
Warren Edward Buffett Chairman & Chief Executive Officer
Marc D. Hamburg Chief Financial Officer & Senior Vice President
Charles Thomas Munger Vice Chairman
David Sanford Gottesman Independent Director
Walter Scott Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
SAMPO OYJ-3.86%28 652