According to a latest Trulia survey conducted in June 2017, 44% of all Americans regret their real estate decisions. An overwhelming 71% Millennials surveyed say they have regrets about the home they chose or the process of getting their current home. Why and what can we do about it?
We wondered about the future of the red hot Toronto market 4 weeks ago when discussing the longevity of a seller’s market, it appears now we are starting to see some answers. The just-released June housing report indicates a rather dramatic sharp turn for Toronto, which has now been dubbed “officially a buyer’s market”. May to June monthly decline was largest since 2010, sales volume to listing volume ratio is now at 1:2.5, and Toronto’s sales is now 42% down from the March 2017 peak. An interesting case study no doubt for how quickly a market can turn hot and then ice cold again with not much warning. Something to keep an eye on.
By examining its on-going quarterly Modern Homebuyer Survey, ValueInsured spotted several trends among Millennial first-time homebuyers that could be part of their coping mechanism as home prices heat up.
Overall, 7 in 10 Americans (71%) – and 70% Millennials – say keeping the American Dream alive is important to them. 66% of all Americans and 69% of Millennials also say it is important to them that the American Dream stays relevant for their children and for future generations. However, there seems to be a consensus that the American Dream cannot become stagnant, and it must evolve to stay meaningful...
Have we entered a new territory where it’s boring to talk about records yet? It seems when it comes to the housing sector, every week a new record is broken: fewest days on market…check; lowest inventory…check; highest average sales price…check. Last week, the median existing home sales price at the national level was reported to have hit an all-time high of $252,800 in May. Median number of days for a home on the market is now 27 days, the shortest since tracking began. For-sale home supply now sits at 2.7 months, again – you guess it – a new record.
As home prices continue to heat up in many parts of the country, consumer jitters and unease also seem to be higher...
Yesterday, the Federal Reserve increased its benchmark interest rate a quarter point to a new target range of 1% to 1.25%. It was a widely watched move as it reaffirms the Fed's confidence in the country’s economic growth and signals a continuous rate-hike trend after two recent increases.
In the latest ValueInsured quarterly Modern Homebuyer Survey conducted in Spring 2017, a nationally represented sample of Americans – including homeowners and renters who want to upgrade or to buy – were asked about their opinions and predictions on interest rate movements. The majority expects to see further rate increases this year:
We certainly gave away the big reveal in the headline above, but it’s hard not to, especially after evidence from the past two weeks in our 3-part series. There has been much discussion since the recent presidential election on how Americans may endear to different or similar beliefs depending on where they reside along the municipal line. We can say when it comes to homeownership and buying attitudes, the pattern of differences seems real.
Last week, we launched a 3-part series dedicated to exploring the "Rural-Urban Divide" in how Americans view home buying differently. It appears – based on ValueInsured’s Modern Homebuyer Survey data accumulated over the past 18 months among over 6,900 homeowners, buyers and renters – Americans universally value the importance of homeownership. However, the shared value seems to end there among people who reside in hometowns of different sizes.
There are many facets along the home-buying attitudinal dimensions where urban, suburban and rural Americans diverge in their beliefs. Some of these include the perceived investment benefits of buying a home, confidence in the housing market, expectation for a housing bubble in the near term, planned length of homeownership, desired attributes in a mortgage lender, etc. The list goes on. But one of the areas that surprised this research team is the strength of the family among urban homebuyers. Let us explain…
Our economy has come a long way since the 2007-09 recession: Wages are going up, unemployment sits at 4.4% (the lowest level since May 2007)—and we’re in the midst of the second-longest bull market ever.
What isn’t growing at an impressive pace? Americans’ confidence in the housing market.
Despite other positive economic indicators, rising home prices and uncertainty about the election left the ValueInsured Housing Confidence Index flat last summer. And while optimism briefly shot up postelection—particularly among millennials, according to the index—it’s dropped again: In March, the Fannie Mae Home Purchase Sentiment Index decreased 3.8% overall, with the percentage of Americans who think now’s a good time to buy falling 10%.
Dubbed the great American "Rural-Urban Divide", or an "Urban-Rural Divide" sometimes when reported by writers from urban areas, there has been a lot of talk about the differences that set Americans from different locales apart. Our analysts and writers are less interested in politics, but we are curious about differences in ideals and motivations that drive American homebuyers, so we can learn to better serve and empower them.
Credit risk transfer (CRT) or sharing is the process in which the government-sponsored enterprises bundle up the mortgages they buy from lenders and sell a portion of the risk to private investors. Instead of the GSEs shouldering the loan risk alone, selected investors help offset any potential risk from loan defaults. CRT began as a test in 2012 and is now quickly ramping up as investor interest and governmental oversight grows. Governmental oversight makes sense—we don’t want another 2007. But why are more investors becoming so interested in CRT?
It has been said that when it comes to housing, the West leads the way. California has been ahead of the recent years’ real estate market run-up, and has garnered international attention for its jaw-dropping home prices. The Golden State enjoys the trifecta of being the most populated state in the nation, one of the most affluent with robust growth industries, and having the unique climate and geographical advantages that continue to make the state appealing to potential homeowners.
In the latest ValueInsured Modern Homebuyer Survey, conducted in April 2017, California homeowners and buyers seem to express apprehension and caution concerning the housing market..
According to NAR, over 65% of all U.S. homes sold in 2016 went to repeat homebuyers. So why do we constantly see more spotlights on first-time homebuyers? For starters (no pun intended), the decline in overall homeownership rate has been largely attributed to first-time homebuyers, whose share of total buyers dropped to a near-30 year low in 2014. Secondly, it is presumed, rightly so, that the entrance of first-time buyers helps expand the overall U.S. housing market, as buyers typically don’t go back to renting by choice once they have owned their first home.
However, as the industry encourages more first-time buyers to convert to homeownership, it is important to remember that without repeat homebuyers who upgrade to bigger, more expensive homes, starter home inventory cannot be freed up for first-time buyers, and the market size would stay stagnant. It has been reported that home sales this Spring has been slowed by low inventory; and one key reason for the shortage is would-be sellers holding onto their current homes, concerned that they may not be able to find desirable homes to upgrade to. In other words, it is not far-fetched to say that not only are repeat buyers responsible for two-thirds of all home sales, they have a hand in helping close the other one-third as well.