This Week in Real Estate consumer confidence again is on the rise and according to a majority of people a home is a solid financial decision. Below are a few of the highlights from the second week in October that influence our business:
* Americans Think Homeownership is a Sound Investment. A vast majority of Americans believe that buying a home is a solid financial decision according to a new survey from the National Association of Realtors. The 2015 National Housing Pulse Survey also found that a preponderance of Americans think that now is a good time to buy a home. The survey, which measures consumers’ attitudes and concerns about housing issues in the nation’s 50 largest metropolitan statistical areas, found that more than 8 in 10 Americans believe that purchasing a home is a good financial decision, and 68 percent believe that now is a good time to buy a home. Seventy-one percent believe they could sell their house for what they paid for it, a jump of 16 percentage points from 2013. The number of renters who are now thinking about purchasing a home is 39 percent. Sixty-one percent of renters stated that owning a home is a priority for their future. Full Story… http://www.realtor.org/news-releases/2015/10/americans-think-homeownership-is-a-sound-investment
* Consumer Sentiment Beats Expectations in October. Consumer sentiment rose in October after three straight monthly declines. The Thomson Reuters/University of Michigan’s preliminary October reading on the index was 92.1. That was higher than the previous month’s reading of 87.2 and Reuters’ estimates of 89. “The rebound in confidence signifies that consumers have concluded that the fears expressed on Wall Street did not extend to Main Street. Importantly, the renewed confidence did not simply represent a relief rally, but instead reflected renewed optimism,” said Surveys of Consumers Chief Economist Richard Curtin.
Full Story… http://www.marketwatch.com/story/umich-sentiment-rises-to-921-in-october-first-increase-in-four-months-2015-10-16?siteid=rss
* Third Quarter Foreclosure Activity Increases From Year Ago in 32 States. RealtyTrac released its Q3 and September 2015 U.S. Foreclosure Market Report this week, which shows a total of 327,258 U.S. properties with foreclosure filings – default notices, scheduled auctions and bank repossessions – in the third quarter of 2015, down 5 percent from the previous quarter but up 3 percent from the third quarter 2014. The annual increase in the third quarter marked the second consecutive quarter where U.S. foreclosure activity increased on a year-over-year basis following 19 consecutive quarters of year-over-year decreases. A total of 133,811 U.S properties started the foreclosure process in the third quarter, down 12 percent from the previous quarter and down 14 percent from a year ago to the lowest level since the third quarter of 2005. There were a total of 123,040 U.S. properties repossessed by the lender in the third quarter, down less than 1 percent from the previous quarter but up 66 percent from a year ago. “The widespread rise in foreclosure activity in the third quarter compared to a year ago is the result of two starkly different trends taking place,” said Daren Blomquist, vice president at RealtyTrac. “In states such as New Jersey, Massachusetts and New York, a flood of deferred distress from the last housing crisis is finally spilling over the legislative and legal dams that have held back some foreclosure activity for years. On the other hand, in states such as Texas, Michigan and Washington, the third quarter increases are a sign that the foreclosure market has settled into a normalized pattern close to or even below pre-crisis levels, and in those states the overall housing market should easily absorb the additional foreclosure activity with little impact on home values.”
Full Story… http://www.realtytrac.com/news/foreclosure-trends/realtytrac-foreclosure-market-report-for-q3-and-september-2015/
* Homeowners Overvalued Their Homes for the Eighth-Straight Month in September. The trend of homeowners estimating their property’s value higher than the actual appraised value continued in September. Nationally, appraiser opinions were an average of 2 percent below the values supplied by the homeowner. This is an improvement from August, when appraisals were 2.65 percent below what was expected by the homeowner. The findings marked the eighth consecutive month homeowner estimates outpaced appraiser opinions.
Full Story… http://www.quickenloans.com/press-room/2015/10/13/overvalued-eighth-straight-month/
Have a productive week!