Shopping for a home is a stressful process, even under ordinary circumstances. But the condition of today’s housing market is anything but ordinary — and buyers are feeling the pressure. According to a new Zillow survey, 50% of buyers in the U.S. said they cried while purchasing a home.
Housing prices have grown at a record pace over the past year amid rising mortgage rates and rabid demand. Coupled with the severe inventory shortage, these conditions have fueled bidding wars and a heightened sense of panic among Americans, particularly the younger generations.
The survey revealed that more than 65% of Gen Z buyers and 61% of millennial buyers were brought to tears at least once during their home-buying journey.
In today’s low-inventory market, homes are receiving multiple offers, often selling for over the list price. In April, nearly half of all homes sold in the U.S. went for over the asking price, up from 37% a year ago.
With 23% fewer homes on the market than a year ago, many buyers opt to waive crucial contingencies to stand out among the fierce competition. Zillow found that nearly 40% of buyers waived a contingency on at least one of their offers, such as their financing or inspection contingency.
Additionally, buyers planning to finance their purchase with a home loan are losing out to others who can pay in cash. According to the survey, nearly 30% of recent buyers said they lost to an all-cash buyer at least once.
With all of the obstacles to overcome in today’s fast-paced market, it’s no surprise that buyers are overwhelmed. Zillow reported that nearly 90% of recent buyers said at least one aspect of the home-buying process was stressful.
Among the buyers surveyed, 62% were stressed about being able to find a home within their budget, 61% were stressed about not having enough homes to choose from, and 58% were stressed about finding a home in their preferred neighborhood.
“Buying a home is not like buying any other asset; it’s deeply personal and it’s emotional,” said Zillow home trends expert Amanda Pendleton. “When you make an offer on a home, you have likely envisioned your life there. If you lose out on that home to a stronger offer, it can feel like losing a future you have already started planning. These survey results find, even when they are ultimately successful, a large share of buyers in today’s competitive market experience heartache and stress.”