The top motivators according to the survey results all speak to the wants of the younger generations: potential cost savings (72%); a faster purchase process (44%); and being able to bid remotely via an app or online (37%).

"Our study suggests that a growing number of buyers are embracing technology, and many are open to new pathways to achieve homeownership," Dave Steinmetz, president of origination services at ServiceLink, said in a press release. "This indicates there is an opportunity for lenders to provide more targeted resources and guidance to buyers throughout their homebuying journey."

The 2022 ServiceLink State of Homebuying Report was compiled from an online survey of 1,000 homebuyers who purchased a home in the last five years, with interviews conducted by Schlesinger Group between Jan. 7 and Jan. 13.

Despite a growing share being willing to buy at auction, 30% of the respondents stated they aren't sure if they would buy a home that way due to a lack of knowledge about the process.

A ServiceLink survey from last November found respondents expecting auction activity to increase this year as foreclosure moratoriums end.

While 31% of the respondents said they would likely use the property purchased at auction as a fix-and-flips, 23% indicated they planned to use it as a primary residence. Another 23% said their intent would be to use the property to generate rental income, such as through a short-term rental service like AirBnB.

A level of "buyer fatigue" exists in today's housing market as among those surveyed that were looking to purchase another property within the past two years, 24% decided against following through.

Of this group, 44% said the options were too expensive; this was up from a 2021 ServiceLink survey. The financial situation changed for 29%, up from 24%. But the percentage gain among those who commented that the for sale inventory was too low, rising to 28% in the 2022 survey from just 8% one year prior.

Among the 38% of respondents that did purchase a home in the past two years, 10% admitted they had buyer's remorse. Overpaying was the top reason cited, by 31% of this group, followed by not doing enough research prior to buying, 27%, and "not consulting enough with experts," 27%.

Buyers are looking to technology to ease the process, and reduce that fatigue. Most respondents — across all age groups and genders — said the biggest benefits of using technology in the home buying process were convenience and ease of use (72%) along with time savings (60%).

However, when asked about the purchase process itself, 42% of baby boomers declared they wouldn't change anything, while just 28% of Gen Xers and 13% of the millennials and Gen Z group said the same thing.

"This could indicate that Gen Z/millennials expect lenders to provide a more efficient experience that is in line with their tech-driven lifestyle, while the older generations seem to be more accustomed to the homebuying process," the report accompanying the survey said.

The survey concludes that lenders need to be a source of education for consumers when they seek out the advice as housing market conditions fluctuate. "Being able to offer resources and guidance in a variety of formats helps to increase trust and strengthen brand loyalty," the report said.

At the same time, online originators have an opportunity to increase their market share by appealing to the older demographics, which currently only look to get a mortgage from a traditional lender.

Online lenders were used by 25% of the Gen Z and millennial respondents, compared with 19% of Gen Xers and 5% of baby boomers.