The FINANCIAL — More Americans are planning to find a new nest to feather in 2014, with 16% planning to move (vs. 10% in 2012), according to the latest American Express Spending & Saving Tracker.
Among those who plan to move, buying has become more popular than renting, with more than 17 million Americans planning to purchase a home, condo or co-op (46% vs. 43% in 2013) vs. 16 million intending to rent their new pad, (44%, down from 47% in 2013.) Prospective buyers might have to shell out more to get what they want, as seller optimism reaches a four-year high, with 65% saying they feel confident in getting their asking price, up 25% since 2010.
"All of the costs associated with moving can really add up, but more consumers are feeling confident that they can afford to put down new roots," said David Rabkin, SVP of Consumer Lending Products for American Express. "With more people looking to purchase a home this year instead of rent, and with seller confidence on the rise, it will create an interesting push and pull as buyers and sellers negotiate," he added.
With seller confidence in a steady climb, only about a third of Americans (30%) feel that it’s a buyer’s market, down from 47% in 2010. However, there is still room for concessions, as most sellers (71%) say they’re more willing to sweeten the deal, a trend that continues to climb, up from 60% in 2010, according to American Express Company.
Despite feeling more flexible on concessions, significantly more sellers say they will de-prioritize certain improvements that might have been done in the past specifically to help property sell more quickly:
Fewer Americans are taking advantage of low interest rates with just 21% planning to refinance this year, down from 25% in 2013. Of those who do, 26% plan to use the savings to pay off debt or bills, down from 38% in 2013.
Regardless of whether they will move or stay put, nearly three quarters of homeowners (73%) plan to make some type of home improvement this year, spending $4,000 on average, on par with 2013. More Americans are opting to take on home improvement projects themselves, with 72% planning to “DIY” this year, up from 66% in 2010. Hiring a contractor to handle the work is on the decline and down to 15% this year, compared to 22% in 2010.
For the second year in a row, personal style is the biggest factor in deciding to renovate (35% vs. 33% in 2013). While DIY and design TV shows are among the most influential in providing home style inspiration, more are finding inspiration from social media than in years past (19% vs. 14% in 2013 and 7% in 2012), according to American Express Company.
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