The most popular word to describe consumer’s feelings This Week in Real Estate is optimistic. There is a lot of positive momentum as we move through our peak selling season. Below are a few of the highlights from the second week of June that influence our business:
* Americans’ Housing Optimism Gains More Momentum. Consumer attitudes about the housing market showed marked improvement last month, according to results from Fannie Mae’s May 2015 National Housing Survey. Among those surveyed, the share who believe now is a good time to sell home continued its steady climb, reaching an all-time survey high in May – six percentage points higher than at the same time last year. Additionally, those saying they would prefer to buy rather than rent a home on their next move increased another three percentage points to 66 percent. Full story… http://www.fanniemae.com/portal/about-us/media/corporate-news/2015/6259.html
* 217,726 Reasons to Buy a Home Now! With interest rates and home prices expected to climb in the next year, the financial penalties of delaying or forgoing a home purchase in today’s market have become very steep, according to the inaugural Opportunity Cost Report released by realtor.com. The report estimates that, based on today’s dollars, the average purchaser would accumulate $217,726 in increased wealth over a 30-year period. The cost, assuming projected increases in mortgage rates and continuing price appreciation, of waiting 1 year to buy is $18,672 and waiting 3 years to buy is $54,879. Full story… http://www.keepingcurrentmatters.com/2015/06/10/217726-reasons-to-buy-a-home-now/
* Households Remain Broadly Optimistic about Housing Market; Most Renters Want to Own. The Federal Reserve Bank of New York recently released the 2015 SCE Housing Survey. The survey revealed that most current renters would prefer owning and that 61.9% of them plan to buy a home within the next five years. 68.3% stated they would prefer owning (45.6% saying they ‘strongly’ prefer owning). When asked at what point in the future do they think they will own a primary residence: 8.2% said within a year, 15.3% said in 1 to 2 years and 38.4% said between 3 to 5 years. Of the 68.3% who would prefer to own, 2 out of 3 cited difficulty in getting a mortgage for the reason they do not own.
Full story… http://www.newyorkfed.org/microeconomics/sce/downloads/data/2015-SCE-Housing-Survey.pdf
* REO Sales Share Below One-Third of Peak. At the peak in January 2009 distressed sales totaled 32.4 percent of all sales and REO sales for 27.9 percent. CoreLogic said on Monday that short sales and sales of owned real estate (REO) fell 3.2 percentage points from March 2014 to March 2015. REO properties accounted for 8.4 percent of home sales in March and short sales made up 3.7 percent for a total distressed property share of 12.1 percent. CoreLogic said there will always be some amount of distress in the housing market but the pre-crisis share of distressed sales was traditionally about 2 percent. If the current year-over-year decrease in the distressed sales share is maintained, that share would reach its “normal” 2 percent mark in mid-2017. Full story… http://www.mortgagenewsdaily.com/06082015_corelogic_distressed_sales.asp
Have a productive week!