According to a survey,
now may be the time to make the move from renter to homeowner. Rentals are
getting quite scarce in this area with rates climbing. Read the full article
below...
BUILDER
REALTORS
SENSE PICK-UP IN HOME BUYER AND SELLER CONFIDENCE
Still,
group frets over inventory shortage and pace of new-home construction.
Existing-homes sales have dropped in four of the past five
months, but the Realtors think the slowdown is not because of a lack of
confidence from consumers about buying and selling a home--or based on their
views about the direction of the economy and their finances.
This quarter, there appears to be a revival in renters who
believe now is a good time to buy a home. After dipping to roughly half of
renters last quarter (52%), the share who believe now is a good time climbed to
62% (60% a year ago). Overall, current homeowners (80%), households with higher
incomes and those living in the more affordable Midwest and South regions are
the most optimistic about buying right now.
The share of home owners who believe now is a good time to sell
is also inching higher. 80% of homeowners think now is a good time to list
their home for sale (a new survey high), which is up from last quarter (75%)
and even more so than a year ago (67%).
Lawrence Yun, NAR chief economist, welcomed the news that
homebuyer and seller optimism is advancing, but said it remains unclear if it
will actually translate to more sales. “The housing market has been in a funk
since early spring because of the ongoing scarcity of new and existing homes
for sale,” he said. “The pace of new home construction has not meaningfully
broken out this year, and not enough home owners at this point have followed
through with their belief that now is a good time to sell. As a result, home
shoppers have seen limited options, stiff competition and weakening
affordability conditions.”
Added Yun, “Buyer demand is robust this fall, but the
disappointing reality is that sales will continue to undershoot their full
potential until supply levels significantly improve.”
More households this quarter (57%) believe the economy is
improving compared to the second quarter (54%) and a year ago (48%). Continuing
the complete reversal from a year ago, those living in rural and suburban areas
were more optimistic about the economy than respondents residing in urban
areas. A majority of home owners and those with incomes above $50,000 also had
a positive outlook on the economy.
The rebound in economic confidence this quarter are also giving
households increased assurances about their financial situation. The HOME
survey’s monthly Personal Financial Outlook Index, showing respondents’
confidence that their financial situation will be better in six months, jumped
from 57.2 in June to 62.0 in September. A year ago, the index was 58.6.
“Jobs are plentiful, wage growth is finally showing signs of
life, home values are up considerably in the past five years and the stock
market is at record highs,” said Yun. “The economy is not perfect, and growth
overall is still sluggish, but the financial health of the typical household
looks as healthy as it has since the recession.”
This quarter,
non-homeowners were asked if they expect their rent to increase over the next
year, and given their current financial situation, what impact paying more in
rent would have on their living arrangements.
Roughly half of current renters expect to pay more in rent next year (51%). If
in fact their rent does increase, most will either resign their lease anyway
(42%) or move to a cheaper rental. Only 15% of respondents will consider buying
a home.
“Even though the typical down payment of a first-time buyer has
been 6% for three straight years, two-thirds of respondents indicated that
saving for one is difficult right now,” said Yun. “Rents and home prices have
outpaced incomes in the past few years, and this is undoubtedly impacting their
ability to put aside savings for a home purchase, even if they increasingly
believe it’s a good time to buy. Heading into next year, higher home prices and
limited inventory in the affordable price range will likely continue to hold
back a share of renters who would prefer to be homeowners.”
The survey was conducted by TechnoMetrica Market Intelligence,
Ramsey, N.J. Each month approximately 900 qualified households responded to the
survey. The data was compiled for this report and a total of 2,709 household
responses are represented.
From: BUILDER Consumer
Trends
Posted on:
September 25, 2017
If you are looking for to buy a home in the Venice, FL, area, we
can be of help to you. Please, contact us at westvillagesrealty@gmail.com for
home plans, pricing, community information, and how we can be an invaluable
asset in getting your dream home!
Thanks for reading!
Ali
Ali H. Johnston, MBA in Real Estate
REALTOR®, Lic. Broker #BK3284964
West Villages Realty LLC
19503 S West Villages Pkwy
Stes A2 & A11 (by Appt)
Venice, Florida 34293
