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The Latest ANALYTICS "Faced with limited inventory, many buyers will feel pressure to act fast; but snap decisions often end in regrets," said Jed Kolko, chief economist at Trulia. One of the common missteps of new homeowners, according to Kolko, is buying before reaching financial stability. "Many buyers would have fewer regrets The M Report | 61 se c on da r y m a r k e t S lightly more than half of Americans harbor at least one regret about their current home, according to Trulia's Real Estate Regrets survey, released in May. In today's seller's market, Trulia says buyers are especially vulnerable to making decisions they may regret in the future. a na ly t ic s Trulia study shows that buyers are setting themselves up for a major letdown. s e r v ic i ng Not So Fast if they waited until they were in strong enough financial shape to afford a house that really meets their needs," he said. In fact, the top regret listed among homeowners is not choosing a larger home. Thirty-four percent of homeowners cited this regret in Trulia's survey. The second most common regret among homeowners is not remodeling more when they purchased their current home. Among renters, the top regret— listed by 42 percent of respondents—is the decision to rent rather than purchase their current homes. Overall, renters are more likely to harbor regrets of any kind toward their current living situation than are homebuyers. Fiftysix percent of renters shared regrets, while 50 percent of homeowners admitted to regrets about their current homes. Trulia also found older homeowners are less likely to regret their home choices. About 75 percent of homeowners ages 18 to 34 have regrets about their homes, while 36 percent of homeowners at least 55 years of age have regrets about their homes. Homeowner regret has declined in recent years compared to about a decade ago. Those who purchased homes between 2003 and 2009 have a 63 percent regret rate, while those who have purchased homes since 2010 have a 55 percent regret rate. With three-fourths of Americans believing now is a better time to buy a home than next year and less than one-third of Americans believing now is a better time to sell a home than next year, the current market is set for a disconnect, which may lead to more buyer regret, according to Trulia. Foreclosures are no longer flooding the market. New construction is still meager, and hopeful sellers are willing to wait for favorable prices. "This year's housing season will likely cause aggressive buyers to scramble in order to try to win bidding wars and overcome stiff competition, putting them at risk of making real estate mistakes they will regret," Trulia stated. Or ig i nat ion "Tight inventories and strong sales led to rising home prices in Atlanta, Minneapolis, Kansas City, Dallas, and San Francisco," the report said. The Beige Book also said that "new home construction continued to pick up" in most areas, "although the Richmond district said that a low supply of residential building materials had stalled construction." The report cited improved commercial real estate and construction activity, with office vacancy rates declining, for example, in the Boston district as construction of mixed-use projects increased. New York also reported office vacancy rates continued to decline, and rents rose in Manhattan. Commercial construction, the report said, was improving in New York, Atlanta, St. Louis, Minneapolis, and Kansas City. Loan demand, according to the Beige Book, was "steady to slightly up" at most of the district banks that commented on lending, though the Philadelphia district said that "loan volumes softened somewhat since the previous report." Other districts—New York, Cleveland, and Dallas—described the increase in loan demand as either "widespread" or "broad-based" for both consumer and business loans. Reports on mortgage lending, the Beige Book said, "were mostly favorable," with stronger refinancing activity in New York and Atlanta. The Cleveland and Kansas City districts, according to the report, "noted a shift from mortgage refinancing to new purchases," and New York, Richmond, Dallas, and San Francisco "reported an uptick in residential mortgage loans." Preparation of the Beige Book rotates among the 12 Federal Reserve banks. Some analysts believe the tenor of the report changes based on which bank prepares the summary. Last month's report was compiled by the Federal Reserve Bank of Dallas, which last prepared the report in June 2012, when it struck a moderate tone.