We can all agree that home buying is a rewarding and exciting journey, but it’s not without bumps along the way and anxious moments. While 78% of all non-homeowners in America say they want to buy a home (ValueInsured July 2017 Modern Homebuyer Survey), 72% of potential homebuyers say they expect to experience stress during the home-buying process.
ValueInsured asked homebuyers in its latest survey what concerns keep them up at night when they are planning to buy a home. The top 5 answers make sense, but there are some regional and demographic differences.
LendingQB, a provider of lean lending loan origination technology solutions, today announced a new partnership with ValueInsured which embeds +Plus down payment protection directly into its loan origination platform. By making +Plus down payment protection a turnkey solution in the existing LendingQB system, lenders are able to easily add down payment protection to their mortgage programs and provide borrowers with a greater choice when selecting a mortgage. +Plus down payment protection enables homebuyers to buy with confidence knowing that recovery up to the full original down payment should the need to sell their home in a down market arises.
Last week, ATTOM data Solutions, curator of the nation’s largest multi-sourced property database, reported that nearly 1 in 4 (22.8%) of all purchase loan originations in our country now require a co-borrower(s)’ credit to afford the loan approved. Co-borrowers are multiple, non-married borrowers listed on the mortgage. In some of the nation’s top real estate markets – which are coincidentally some of the most expensive with rapidly rising home prices – co-borrower rates are eye-popping: half of all new home loans in San Jose now needs a co-borrower’s credit to satisfy the loan requirement (51%), nearly half in Miami (45%), 39% in Seattle, 31% in Los Angeles and 29% in San Diego.
It begs the question: can these new homebuyers actually afford the homes they buy?
We don’t know when it began, but the American Dream seems to have earned itself a bad name, or at least the accusation of being irrelevant. We all have heard the American Dream is dead –here, here, and here – in too many headlines to list; a report just released last week declared 75% of Americans are losing faith in the Dream, and that just 1 in 5 say they are living it. But somehow, for something that is supposedly irrelevant or on life support, the American Dream finds itself in the news a lot, particularly lately. So let’s get to the bottom of this: do Americans care about the American Dream, or not? Short answer: yes.
With the proliferation of content channels and the public’s appetite for instant news, there is no shortage of headlines, including in regards to housing. This week, we take a look at the latest news that could impact the housing market, and try to make sense of them.
Affordability is by far the biggest barrier to homeownership for Millennials. This fiscally conservative generation is looking for greater value and flexibility from their dollar in everything they do - including housing. Through ValueInsured’s quarterly survey, we learned that even among Millennial non-homeowners who express an interest in buying a home “in the next few year”, the confidence that they could actually afford one they would like to buy continues to hover below 50%.
It could be another eight years before all homes recover their value: Trulia
Most American homes are worth less now than they were before the recession, according to a report out Wednesday.
Fresh data from real-estate website Trulia show that just 34.2% of homes have returned to the peak levels registered before the onset of the recession in 2008. What’s more, Trulia estimates it could take until 2025 for a true national recovery in home prices.
In the latest quarterly ValueInsured Modern Homebuyer Survey, conducted in July 2017 among a nationally representative sample of homeowners and interested homebuyers, Americans shared what external risk factors they consider when they buy a home.
Americans have simmering concerns about overheated house prices and increasingly suspect that a housing price correction may be imminent, reported ValueInsured, Dallas.
"We see more homebuyers concerned with timing the market," said ValueInsured CEO Joe Melendez. "This is especially true for Millennials, who are more likely to switch jobs, relocate or need to upsize in the next few years. No one wants to buy at the peak and find themselves underwater as so many did a decade ago."
This supply and demand imbalance has sent home prices soaring. Prices are up so much in some markets that a new homebuyer survey by ValueInsured uncovered significant concerns among many buyers that the housing market is in for a price correction.
A nationwide increase in median home values coupled with low inventory indicates a stronger post-recession market. However, more Americans are becoming wary of this upward trajectory, according to ValueInsured’s recent Modern Homebuyer survey. In fact, a majority of participants believe the country is headed for another market correction.
Americans increasingly believe the housing market is overheating and home prices continue to rise, and said they suspect a housing price correction may be imminent, according to the latest Modern Homebuyer Survey from ValueInsured, aprovider of down payment protection for homebuyers.
More than half of American homeowners—58 percent—say they expect there will be a “housing bubble and a price correction” within the next two years, according to the latest survey of more than 1,000 Americans from ValueInsured’s Modern Homebuyer Survey.
NAR's latest Housing Pulse survey echoes some of ValueInsured's findings, with six of 10 respondents saying they are concerned about the cost to buy a home or high rent prices in their area. Eighty-four percent of the Housing Pulse respondents say they believe buying a home is a good financial decision, and affordability was ranked as the fourth top issue, after affordable health care, low wages and debt, and heroin and opioid drug abuse.