American Express Spending & Saving Tracker Home Improvement 2013

Transcription

1 American Express Spending & Saving Tracker Home Improvement Prepared by: March 21,

2 Research Method The American Express Spending & Saving Tracker research was completed online among a random sample of 1,518 adults, including the general U.S. population, as well as an Affluent demographic, defined as having a minimum annual household income of $100,000, and homeowners. Interviewing was conducted by Echo Research between February 27 and March 1,. Overall the results have a margin of error of ± 2.5 (total respondents), ± 3.1 (homeowners) and ± 4.1 (Affluents) percentage points. Page 2

3 Consumer Plans to Move are up from One Year Ago Fifteen percent of consumers have plans to move this year (up from in 2012) of those consumers, 43% plan to purchase a new home/condo/apartment vs. 47% (up from 42% in 2012) who plan to rent. Consumer Moving Plans Plans to Purchase or Rent? Any who plan to move 15% 50% increase in plans to move PURCHASING a new home, condo, or apartment 43% 44% No plans to move 75% 80% RENTING a new home, condo or apartment 47% 42% 14% 2012 Q. Are you planning on moving to a new home, condo or apartment in? Base: Total Respondents Q. Which of the following describes your moving plans in? BASE: Total planning to move to a new home, condo or apartment in Page 3

4 Most Homeowners Exude Confidence in the Real Estate Market Today Fifty-seven percent (up from 42% in 2012) of homeowners feel confident they would get the asking price of their home if they were to put their house on the market today. Confident 42% 57% 3 increase from 2012 Confident 53% 6 Not very/ not at all confident 3 52% Not very/ not at all confident 31% 43% 7% % 4% Q.If you were to put your house on the market today - how confident are you that you would get the asking price for your home? BASE: Total homeowners Page 4

5 More feel the Real Estate Market will be at its Best for Selling within the Next Six Months than One Year or More Forty-five percent of homeowners say the real estate market will be at its best for selling within the next six months, while 28% say one year or more from now and 27% are not sure. Next 6 months 45% 47% Next 6 months 65% 68% 1 year or more 28% 23% 1 year or more 21% 18% 27% 30% % 14% Q. When do you think the real estate market will be at its best for selling? BASE: Total homeowners Page 5

6 Most Homeowners are Willing to Make Concessions In Order to Sell their Home in the Current Real Estate Market than sacrificing price, seven in in ten (70% - a 13% increase from 2011) homeowners are willing to make concessions in order to sell their home in today s real estate market, such as offering to give away their appliances (4). Any concessions (net) Offer to include appliances Offer to make requested repairs Pay for buyer s closing costs Offer to include furniture 18% 15% 13% 12% 32% 29% 4 41% 70% 65% 11% in % in 2011 Any concessions (net) Offer to include appliances Offer to make requested repairs Pay for buyer s closing costs Offer to include furniture 80% 72% 57% 53% 44% 37% 23% 1 17% 1 3% 3% 3% 3% 30% 35% % 28% Q. than adjusting the asking price - what concessions would you be willing to make in order to sell your home in the current real estate market? BASE: Total homeowners Page 6

7 Small Repairs Top the List of Critical Repairs to Prep a Home to Sell Making small repairs to the inside and out (69%), organizing and removing clutter (6), and paint prepping (interior or exterior) are the top 3 critical investments in prepping a home to sell. Make small repairs to the inside and out * 69% Make small repairs to the inside and out * 74% Organize and remove clutter 6 Organize and remove clutter 73% Any Paint Prepping (interior/exterior) 63% Any Paint Prepping 57% Update bathrooms 33% Update bathrooms 32% Replace out of date appliances 24% Replace out of date appliances 27% Hire a professional 23% Hire a professional 29% 2% 2% * i.e., leaky faucets, cracked windowpanes, damaged plaster Q. Which of the following do you consider a critical investment in prepping a home to sell? BASE: Total homeowners Page 7

8 Refinancing Plans are Evident for Homeowners One in four homeowners either refinanced last year or will this year. I have refinanced my home within the past year 14% I have refinanced my home within the past year 18% I am in the process of refinancing my home 3% Any Refinancing (25%) I am in the process of refinancing my home 5% Any Refinancing (33%) I plan to refinance my home this year 8% I plan to refinance my home this year I have no plans to refinance my home in the near future 67% I have no plans to refinance my home in the near future 60% 8% 7% Q. Which best describes your plans to refinance your home? BASE: Total homeowners Page 8

9 Many who Refinanced or Will this Year say the Extra Money from a Refinance will go to Paying Down Debt/Bills Among those who refinanced or will this year thirty-eight percent say the extra money from the refinance will go to paying down debt/ bills, and 23% will save that money, followed by 12% will spend it on home improvements. Pay down debt/bills 38% Pay down debt/bills 2 Save it 23% Save it 24% Spend on home improvements 12% Spend on home improvements 14% Deposit in an investment or stock brokerage account Invest in myself/my family (ie school, job training, etc) Deposit in an investment or stock brokerage account Invest in myself/my family (ie school, job training, etc) 8% 7% Spend on vacation/travel 5% Spend on vacation/travel Splurge on a big ticket item (gadgets, clothing, jewelry, etc) 4% Splurge on a big ticket item (gadgets, clothing, jewelry, etc) 5% Q. What do you plan to do or what did you do with the extra money from your refinance? BASE: Total homeowners who refinanced past year or will this year Page 9

10 Most Homeowners are Planning Home Improvements this Year and will Spend an Average of $4,000 Seventy-two percent of homeowners have home improvement plans (on par with last year) and will spend $4,000 on average this is an average of 14% more on projects this year vs. last year. Any Home Improvement Plans Average Spend % $4,000 70% $3,500 77% $6,600 72% $5,700 Remodel indoors Average Spend 63% $3,300 58% $2,700 67% $5,300 61% $4,500 Remodel outdoors Average Spend 39% $1,800 35% $2,000 39% $2,800 40% $2,500 Q. Which of the following home improvements do you have plans for in? Base = Total homeowners Page 10

11 Homeowner Improvement Plans include New Home Accessories, New Furniture, New Appliances Among homeowners with improvement plans, at least one third say they are planning on purchasing new home accessories (3), new furniture addition (35%), or new appliances (33%). On average, about $1,000 will be spent on new furniture or new appliances, respectively. New Home Accessories Average Spend $333 37% $170 45% $522 4 $375 New Furniture Average Spend 35% $1,083 35% $680 45% $1,731 40% $1,101 New Appliances Average Spend 33% $1,033 28% $705 37% $1,472 34% $1,195 home improvement plans rated (not illustrated) - Refreshing Old Furniture (18%) and Rearranging Furniture (). Q. Are you planning on purchasing any new appliances and/or furniture or accessories to your home in? Base = Total homeowners with home improvement plans Page 11

12 Primary Reason For Home Improvement Plans is to Reflect their Personal Style and Increase their Home s Value Among homeowners with home improvement plans one third say their primary reason for these plans is to reflect their personal style (33%). Make changes to my home that better reflect my personal preference and style 33% Make changes to my home that better reflect my personal preference and style 38% Increase the value of my home 30% Increase the value of my home 19% Create more room for entertaining friends and family 7% Create more room for entertaining friends and family 8% Prepare my home to sell Prepare my home to sell 8% Make more room for a growing family 4% Make more room for a growing family 13% 1 7% 5% Q. What is the primary reason you plan to undertake home improvement projects in? BASE: Base = Total homeowners with home improvement plans Page 12

13 Social Media Stirs up Home Improvement Inspirations this Year Among homeowners with home improvement plans, more than one third (39%) are inspired by DIY- design television shows (down from 43% in 2012), and in-store displays (3 - up from 33%). Notably, social media, such as Pinterest is on the rise (14% vs. 7% in 2012). DIY + design television shows In store displays Online design/ DIY web sites Home décor magazines Homes of friends/ families / neighbors Local design showrooms/ model homes Home décor catalogues Social media (i.e. Pinterest) Advice from an interior designer None of the above 39% 43% 3 33% 30% 32% 29% 29% 29% 2 22% 21% 19% 17% 14% 7% 8% 5% 4% 5% 15% 18% 2012 DIY + design television shows In store displays Online design/ DIY web sites Home décor magazines Homes of friends/ families / neighbors Local design showrooms/ model homes Home décor catalogues Social media (i.e. Pinterest) Advice from an interior designer None of the above 39% 41% 41% 44% 32% 33% 34% 40% 30% 30% 25% 2 20% 28% 17% 1 12% 5% 4% 13% 12% Q As you plan home improvements this year, where will you turn to for inspiration? : Base = Total homeowners with home improvement plans Page 13

14 Green Home Improvement Plans are on the Rise from Two Years Ago About one half (49%) of homeowners with improvement plans intend to include green changes to their home (up from 32% in 2011). Windows and doors are the leading green improvement among these consumers 29% (up from 1 in 2011). Windows and Doors Insulation Heating, Ventilation and/or Cooling Roofing Water Heaters 1 19% 12% 18% 1 11% 15% 9% 29% Any spend on "GREEN" HOME IMPROVEMENTs (49% - vs. 32% in 2011) Alternative energy systems * 3% 12% 2011 * i.e., Solar Energy Systems, Biomass stoves, Geothermal Heat Pumps, Residential Fuel Cells, Small Wind Turbines Q Do you have plans to make any of the following "green" home improvements in? Base = Total homeowners with home improvement plans [NOT ASKED IN 2012] Page 14