Personality traits won't always match a real estate profile exactly, but individual personality can have an influence on the way people choose to live. ~ Wall Street Journal
Minneapolis, Twin Cities Minnestoa (PRWEB) October 30, 2014
Fresh research indicates that each individual's personality traits may be foretelling of his or her home purchase behaviors. Tel Aviv University Professor Danny Ben-Shahar discovered "a very solid correlation" between personality and real estate choices and reported to the Wall Street Journal in an article titled In Real Estate, Your Personality Makes You Predictable. The research lends clues to home buyer preferences in the Twin Cities housing market; predictive behaviors are useful for both real estate investors and would-be home sellers.
"Home Sellers in Twin Cities can always appreciate better insights that predict home buyer preferences in the Twin Cities housing market," says Jenna Thuening, owner of Home Destination.
Prospective home buyers with high neuroticism scores tend to want the control that comes with owning their own home over renting one. Neurotic individuals tend have less risk tolerance, Ben-Shahar told The Wall Street Journal. Researchers controlled for several variables, such as level of education, home ownership, age, gender, and income.
Personality Types That Influence Housing Decisions - The Study was drawn from responses by 1,100 individuals who rated themselves on the following personality traits:
- Openness (e.g. artistic and imaginative) - tend to opt for mortgages with lower loan-to-value ratio
- Conscientiousness (efficient and organized) - want a fixed-rate mortgage
- Extroversion (sociable and energetic) - tend to opt for mortgages with lower loan-to-value ratio
- Agreeableness (forgiving and undemanding) - prefer to invest in real estate versus stocks
- Neuroticism (tense and moody) – would rather own than rent
Real Estate Inclinations - The respondents were also queried as to their real estate inclinations; questions incorporated the following categories:
- Type of mortgage
- Preference to rent or buy
- Investing in real estate vs stocks
The Influence of Mortgage Rates on Twin Cities Home Buyers
Conventional mortgage rates have continued lower, yet oddly overall they don’t seem to be enticing a strong buyer reaction. The Mortgage Bankers Association expects the average rate on a 30-year, fixed rate mortgage to increase gradually to 5.1 percent by the end of 2015. Higher rates may discourage some personality types from refinancing or buying homes. “Overall it’s best not to make a “spooked” or fearful decision to buy or not buy a home. Individuals who have a strong support team made up of professionals who offer guidance are in a positive place to make better living decisions,” says Thuening.
“While rates are attractive, the overly burdensome requests for documentation result in many buyers losing the will to live. I've worked on a refi for myself and it's endless. I'm sure that good lending decisions can be made with less documentation,” stated Simon Rimmington in Realtor Magazine on October 29th.
Renowned for his previous analysis related to real estate markets, such as Productive Signaling Equilibria and Over-Maintenance: An Application to Real Estate Markets, Danny Ben-Shahar's work in highly regarded. With just how major a home purchase decision is and how influencing living arrangements are, the study snagged the focus of Realtor Magazine.
"The Twin Cities housing market was recognized for being a trend setter nationally in a Trulia study earlier this year; the new research is intriguing for housing experts," comments Thuening.
About Home Destination - Twin Cities Real Estate:
Home Destination offers a loyal and committed real estate professional service that personally handles all of the details of selling or purchasing homes in Eden Prairie, Minnesota. Highly regarded by peers as a Minneapolis metro expert for over 15 years, gain a skilled representative as guide to make the best possible housing decisions. Helping all home buyer types, from individuals seeking to buy their first home to individuals moving-up to a luxury home, Jenna Thuening has the real estate experience and acumen buyers and sellers benefit from.