Down payment protection can provide the confidence needed to buy and sell a home
According to a newly released survey of American homeowners and home renters, conducted online in October 2015 by Harris Poll on behalf of ValueInsured, although Americans embrace the dream of homeownership, the possibility of losing a hard-earned down payment seems to be discouraging them from taking the plunge. Only 55 percent of renters are confident they will get their down payment back if they were to buy today and have to sell in the next 2-7 years (the average employee tenure in the U.S. is 4.6 years overall, 3 years for millennials).
If Americans could trust their down payment to be protected, it would be a different story:
- More than three in five (63 percent) renters say they would be more likely to buy a home sooner if they could have the option to buy down payment protection.
- More than three in 10 existing homeowners (31 percent) and more than half of millennial homeowners (52 percent) say they would be more likely to buy a new home if they can have the option to buy down payment protection.
- 81 percent of renters and 67 percent of homeowners believe that down payment protection would give people more confidence in buying a home.
“Despite the fact that“While consumer morale continues to rise, there is still a crisis of confidence in the housing market for both homeowners and homebuyers due to the financial events of 2007 through 2008,” says Cleve Bellar, chief marketing officer of ValueInsured. “It is encouraging that Americans want to own a home, but in order to take that step they want assurance that their nest egg is protected.”
American Dream is Alive and Well
Despite the fact that all key economic conditions are ripe for a boost in the home sales market, millions of potential homebuyers and current homeowners are still staying on the sidelines due to a lack of purchasing confidence. This lack of economic confidence is underscored by the Conference Board's latest figures, which show a significant 5-point drop in the Consumer Confidence Index for September 2015.
Notwithstanding financial fears, Americans remain committed to the ideal of home ownership. Seventy eight percent of renters say it is important to one day own a home or to become a homeowner again. This is especially true for millennials. Nine out of 10 millennial renters (ages 18-34) say it is important to one day own a home or to become a homeowner again.
While down payment protection will not be available for another few months, Americans appear ready to benefit from the financial assurance it offers. Seventy percent of renters say they would purchase down payment protection if they decided to buy a home today. More than three in 10 current homeowners (32 percent) and nearly half (49 percent) of millennial homeowners say that if down payment protection were available when they bought their current home, they would have purchased the coverage.
"We're launching +Plus by ValueInsured to provide down payment protection for the modern homebuyer and to help Americans achieve their dream of owning a home," says Joe Melendez, CEO of ValueInsured. "Americans work hard to save for a home, and we want to make sure that investment is protected so that they can confidently buy a home now as well as reinvest it down the line."
This survey was conducted online within the United States by Harris Poll on behalf of ValueInsured from October 1-5, 2015 among 2,019 adults ages 18 and older, among whom 1,209 are homeowners and 746 are renters. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact Daphne Baxter at Daphne.Baxter@valueinsured.com.