Homebuyers Hesitate as Market Conditions Remain Uncertain MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

 The most recent Bank of America Homebuyer Insights Report, which was released in conjunction with the Bank of America Institute’s most recent On the move analysis, shows that uncertainty among current homeowners and potential buyers is at a three-year high, with sixty percent of respondents saying they are unsure whether this is a good time to buy a home or not, up from forty eight percent two years ago.

 Nevertheless, fifty two percent of potential buyers are upbeat about the current status of the real estate market, stating that it is better now than it was a year ago. Compared to sixty two percent in 2023, three out of four people (seventy five percent) are waiting to purchase a new home because they anticipate a decline in housing prices and loan rates.

“With so many factors impacting the homebuying market, prospective buyers and current homeowners are left wondering what it all means for them,” according to Matt Vernon, Head of Consumer Lending at Bank of America. “As our research shows, a majority of buyers feel the market is headed in the right direction, but many are still planning to wait for more favorable conditions before they decide to take action.”

Gen Zers On Edge of Homebuying

The new study also shows that, in spite of financial obstacles, Gen Z and Millennials are still highly motivated by the desire to become homeowners, which pushes them to prefer the long-term financial security that a home may offer over short-term sacrifices. According to three out of four existing homeowners, being a homeowner is a significant accomplishment for Gen Z and Millennials.

The data from 2025 reveals:

• Thirty percent of Gen Z homeowners reported that they paid for their down payment by taking on an extra job, compared to twenty eight percent in 2024 and twenty four percent in 2023.
• Twenty two percent of Gen Z homeowners reported that they purchased their home with siblings, compared to twelve percent in 2024 and four percent in 2023.
• Thirty four percent of Gen Z prospective homebuyers would consider living with family or friends while waiting to purchase a home.
• Twenty one percent of Gen Z prospective homebuyers say they plan to pay for their down payment with a loan from parents or family, compared to just fifteen percent of the general population who say the same. Among all prospective homebuyers, this number is up from twelve percent in 2024 and nine percent in 2023.

“Even with the challenges they face, younger generations still understand the long-term value owning a home offers them and many are doing what it takes to get there,” Vernon said. “They are finding creative ways to afford down payments and working hard to improve their financial futures.”

Additionally, when it comes to homeownership, sixty two percent of both existing and potential homeowners are worried about the effects of extreme weather and natural catastrophes, and seventy three percent believe it is crucial to purchase in places with a reduced chance of these occurrences.

The likelihood of severe weather in the neighborhood has caused many (thirty eight percent) to shift their chosen home-buying location. Nearly a quarter (twenty three percent) of current homeowners have personally suffered property loss or damage as a result of extreme weather occurrences within the previous five years.
Of those who currently own a home, some sixty five percent are taking precautions against extreme weather.

Good luck!

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