A new survey from Realtor.com and Censuswide found crock pots and matching linens are out and down payments are in as wedding gifts this season. The research found newlyweds would rather skip receiving traditional wedding presents in favor of financial gifts toward the purchase of a home.
"Over the last few years, homebuyers have been facing a number of challenges, most notably around affordability due to high home prices and mortgage rates," said Clare Trapasso, executive news editor at Realtor.com. "We're seeing buyers get creative with how they cobble together the necessary financials."
Among those surveyed who have created a wedding registry in the last 24 months, 85% say they would have preferred to have received money toward a down payment on a home, rather than a physical gift. Eighty percent say if they were creating a gift registry today, they would include an option for people to gift them money toward home buying expenses, such as a down payment, a mortgage payment or closing costs.
However, despite the desire for financial gifts toward a home purchase, both newlyweds and gift givers are stuck in a traditional gift-giving cycle. This caused most of those surveyed who recently created a wedding registry to register for gifts they didn't really want. Among those surveyed, 46% registered for gifts they didn't want because they felt obligated to have traditional gifts on their registry; 40% registered for gifts they didn't want because their fiancé/spouse wanted them; 35% registered for gifts they didn't want, but planned to return them for money to use on what they really want
The obligation to traditional gifting goes both ways, since 80% of those surveyed say they've felt obligated to buy a traditional gift for a wedding they attended and 70% say they would prefer to buy a traditional gift for a wedding they attend.
Meanwhile, 72% of those surveyed who recently created a wedding registry included options on their registry for people to contribute financially to a specific large-ticket item, such as a honeymoon, and 22% said they didn't include this option, but would have liked to. This corresponds with more people being willing to give money toward home buying as a gift at weddings they attend, with 30% of those surveyed now being open to giving such gifts - 16% would prefer to gift money toward a home down payment, and 14% have no preference between a traditional gift and money toward home buying expenses.
"This is an interesting survey that shows how tough the market is for buyers. Unless they receive help from family or have substantial dual incomes, it is especially challenging for first-time homebuyers, particularly newlywed couples, to purchase a home," commented Jim Hamilton, president of the Silicon Valley Association of Realtors. "Constrained by higher interest rates, low inventory and strong competition, buyers are seeing the need to be practical with all things, including wedding presents. Even wedding guests see the practical aspect of giving financial gifts over traditional wedding presents. It's a frustrating situation for first-time homebuyers," said Hamilton.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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