Most homebuyers, especially millennials, say they’re willing to break a budget for their dream house as the housing market continues to heat up during the COVID-19 pandemic, according to a new survey published by LendingTree on Wednesday.
LendingTree’s survey of more than 1,000 potential homebuyers showed that 64 percent of respondents would be willing to go over their budget to purchase their dream home.
What’s more, millennial homebuyers are more likely to break a budget, with 76 percent saying they’d stretch for the perfect house, the survey found.
Even as the COVID pandemic has battered the economy, the housing market remained strong, bolstered by historically low mortgage rates and strong demand for a limited number of affordable homes.
The study found that 37 percent of those surveyed said finding a home within budget was the “most stressful” part of the homebuying process, while 17 percent said they’re stressed because of low housing inventory in their area.
When asked about the most important aspect of buying a home, people placed the location higher than a home within their budget. Thirty percent of respondents listed the home’s location as the most important factor, while 27 percent cited staying within a budget.
“I urge homebuyers to be very cautious about going over budget. Many people underestimate the maintenance costs of owning a home. If you are stretched financially and underinvest in maintenance it can diminish the value of your home,” LendingTree’s Cheif Economist, Tendayi Kapfidze, said in a statement.
Shares of LendingTree (TREE) were last trading up 1.41 percent, or $4.20, near $303.45 on Thursday.