Three in Five Would-Be Sellers Waiting for Prices to Settle, According to the Latest ValueInsured Modern Homebuyer Survey
It’s a seller’s market thanks to low inventory, but according to ValueInsured’s latest quarterly Modern Homebuyer Survey, many would-be sellers are hesitating to sell because of the high price they’d have to pay for their next home.
The survey, released today, found that 79 percent of homeowners believe now is a good time to sell a home. Two-thirds of homeowners are interested in actually selling their home “in the near future,” up 8 percentage points from last quarter.
There is plenty of noise in housing in the past week: Much of our industry rejects the newly proposed tax reform which includes cutting mortgage tax deduction. Some speculate the pending tax cut could trigger the next housing crisis, others say our industry is in a panic. A couple of days ago, a new report assessed nearly half of the country’s top 50 metro markets are overvalued. On the same day, a growing player in the home mortgage space suddenly threw in the towel, citing over-competition. We decided not to add to the noise this week; instead, we offer two simple thoughts...
A recent August survey by Freddie Mac found 3 in 4 renters (76%) now believe renting is more affordable than owning a home, up from 68% in March. The survey also reported that 63% of young Millennials ages 21-27 said renting fits their current lifestyle.
ValueInsured through its Modern Homebuyer Survey has been asking similar questions quarterly to gauge desire and preference in buying versus renting. While the desire to own a home remains high among all Americans, including Mllennials, ValueInsured’s researchers have noticed a similar drop in positive attitudes toward buying.
To learn more about homebuyers’ priorities, ValueInsured has used its quarterly Modern Homebuyer Survey to explore what types of home-buying related challenges keep them up at night, what they are willing to give us to fit within their budget. In the latest survey, ValueInsured posed this hypothetical question: If you had $10 per month to spend to insure and protect one thing in your new home, what would you choose to spend that $10 on?
Introducing +Plus Equity Protection, Latest Product from ValueInsured to Protect Homeowners
DENVER, Oct. 24, 2017 /PRNewswire/ -- ValueInsured, the only provider of home down payment protection, today announced the availability of +Plus Equity Protection on home refinances at the Mortgage Bankers Annual Convention and Expo in Denver. The new +Plus Equity Protection program allows current homeowners to refinance their current loans and protect their equity for the future - the same way +Plus Down Payment Protection does for homebuyers.
Millennials are living at home longer to avoid paying high rent or to save for their own down payment. This is not news. Millennials are even asking their parents to refinance their own home in order to help with all-cash offers to win bidding wars. You may have already heard about this one also.
But did you know that Millennials are hardly alone, at least when it comes to receiving home-buying assistance from family. In ValueInsured’s latest Modern Homebuyer Survey, it is reported that nearly 1 in 4 interested homebuyers plan to seek down payment help from a family member. What’s more interesting is that the pattern is near universal, across demographic segments.
It is not a surprise that a minority yet still sizeable share of homeowners in ValueInsured’s latest Modern Homebuyer Survey express less than fair level of confidence that they could sell their home for the same or more than what they paid for. Overall, homeowners’ confidence level is high. Nationally, 72% of all homeowners are confident their home has retained or increased in value since they bought it. There are, however, segments of homeowners that show lower level of confidence.
The Only Provider of Down Payment Protection Enables Homebuyers to Close with Confidence
DALLAS, Oct. 11, 2017 /PRNewswire/ -- ValueInsured, the only provider of down payment protection, today announced the closing of $6.5M of funding led by an affiliate of Everest Re Group Ltd. and also Houston International Insurance Group (HIIG). The latest round of funding from Everest Re and HIIG builds on their existing partnerships with ValueInsured, which began in 2014 with an initial $6M seed round. This additional investment provides ValueInsured with the growth capital to continue its aggressive distribution partnership strategy, expanding channel presence and enhancing the features of the +Plus SM down payment protection program.
New Home Mortgage Program Provides Greater Security to Georgia Homebuyers if They Have to Sell at a Loss, Empowering Them to Buy With Confidence
ATLANTA, October 4, 2017 – BankSouth Mortgage today introduced BankSouth Mortgage +Plus, an innovative product that gives Georgia homebuyers greater control by protecting their down payment against potential future drops in market prices. Included as a feature of BankSouth Mortgage +Plus loans, +Plus SM down payment protection enables homebuyers to buy with confidence knowing that they can recover up to their full original down payment should they need to sell their home in a down market.
At first glance, this should have been the best time for homeowners to sell their homes. After all, it’s been dubbed the “strongest seller's market ever”. In ValueInsured’s latest Modern Homebuyer Survey, 83% of all homeowners in America believe “now is a good time to sell”. So the 29.6 trillion-dollar question is: why aren’t they selling?
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.