Survey: Homeowners Thinking Green on Home Improvem
New York, NY, October 30, 2006--For home owners dreaming of making improvements, environmentally friendly changes are the top choice, according to a survey released by Wells Fargo.
Given $50,000, some 24 percent of those surveyed "dream green" and would purchase insulation, double-paned windows, solar panels and energy-efficient appliances, according to the bank's third annual U.S. homeowners study.
Twelve percent of those surveyed wanted state-of-the art chef's kitchens, and 11 percent sought luxury master bedroom suites or master baths.
Wells Fargo expected that the first choice would be for improvements that would only be aesthetically pleasing or add size or value, said Doreen Woo Ho, president of Wells Fargo's consumer credit group, in a statement.
"However, we found that Americans are showing signs of becoming more environmentally aware and want to take actions that save money, help preserve the environment, as well as add value to their home," she said.
Younger homeowners in Generation Y, aged 18 to 29, are more likely than Baby Boomers aged 42-60 and War Babies aged 61 and older to view real estate as an important investment option.
"This survey shows a shift in the traditional mindset that the home only offers comfort and security for the future. It's now considered a major part of homeowners' financial portfolios," said Woo Ho.
The study also found that one in seven homeowners had adjustable-rate mortgages. ARM holder were skewed more heavily to younger borrowers. More than half, 56 percent, said they would refinance when their interest rates adjust upward, while 21 percent said they planned to take no action.
Women were more likely than men, by a 3-to-2 ratio, to say security is the most important benefit of owning a home. By the same ratio, men were more likely than women to see the home as an investment. Ninety percent of owners expect their home value to stay the same (27 percent) or increase (63 percent) over the next 12 months.
"This survey finding suggests that homeowners are seeing the conditions of their local housing markets and concluding that it is more likely that price declines will be moderate, not steep," Woo Ho said.
"There is a divergence of opinion among housing market experts today on how much prices might adjust," she said, adding that the survey data give credence to "the view that we're more likely to have stability over time."
