Posts Tagged ‘homeownership’

New Home Sales Less Than Half of Historical Norms

Posted on June 13, 2017 by Laura Lam

The current level makes up 88.3% of the 50-year average, according to a report from Trulia. However, new home sales are unable to keep up with the rate of total sales.  How many new home sales do we need for the market to look normal?  According to Trulia Chief Economist Ralph McLaughlin, if we compare the share of new home sales to total sales, that share needs to more than double.  “In April, new home sales made up about 11.9% of all home sales, which is less than half of the historical average of 23.6%,” McLaughlin said. However other experts explain…

The Top 10 Careers for First-Time Home Buyers

Posted on May 26, 2017 by Laura Lam

Although home prices continue to rise, one degree stands above the rest as being the best for those who wish to buy at home closer to the start of their career.  Of the top 26 degrees that would allow graduates to purchase a home in four years, 22 of them involve engineering, according to a recent study from Realtor.com.  The top degree enables buyers to purchase a home within 2.5 years of graduation. “When it comes to homeownership, degrees in engineering really pay off,” realtor.com Senior Economist Joe Kirchner said. “It shows just how powerful a high starting salary can…

Renters Finally Turning Toward Homeownership

Posted on May 04, 2017 by Laura Lam

The homeownership rate has been on the decline ever since the peak of the housing bubble a decade ago.  However, last month, the Census Department said American home ownership was 63.6% in the first quarter, down a bit from the fourth quarter of 2016, but up from a year ago, which is economists’ preferred way to gauge the data. According to Trulia Chief Economist Ralph McLaughlin, the number of owner-occupied households rose more quickly than renter households for the first time since 2006. The number of new owner households was up 850,000, compared to a 365,000 increase in the number of…

Home Sellers See Biggest Profits in a Decade

Posted on May 01, 2017 by Laura Lam

Homeowners who sold their property in the first quarter realized an average price gain of $44,000 since purchase, representing an average 24% return on the purchase price – the highest average price gain for home sellers in terms of both dollars and% returns since the third quarter of 2007. According to new statistics from ATTOM Data Solutions, homeowners who sold in the first quarter had their property for an average of 7.97 years, down slightly from a record-high average homeownership tenure of eight years in the fourth quarter of 2016 but still up from 7.68 years in the first quarter…

Millennials Warm Up to Homeownership

Posted on April 27, 2017 by Laura Lam

For the second year in a row, Bank of America has conducted its Homebuyer Insights Report, which explores the attitudes, behaviors and preferences of current homebuyers. This year, a major focus was on millennials who are beginning to change their perspective on home buying.  According to Steve Boland, head of consumer lending for Bank of America, they surveyed young adults who had pulled the trigger and that it was the right decision.  “They are telling their millennial counterparts who are sitting on the sideline … this is going to be a great decision, it will help with your personal and…

Millennials Locked Out of Housing Market Again

Posted on March 14, 2017 by Laura Lam

For quite some time, we’ve heard that Millennials have put off buying a home.  These reasons include student debt load, tighter lending standards, and simply not wanting to sacrifice everything for a chance to own the “American Dream.”  Whether Millennials actually want to buy a home or not, there has to be homes available to purchase.  Currently, young home shoppers have a very shallow pool of options – and the current inventory shortage is predicted to stick around through 2017. Daren Blomquist, senior vice president at ATTOM Data Solutions, identified 3 key factors keeping housing inventory in a drought, barring entrance for aspiring…

2017 Will Bring Modest Economic Growth

Posted on February 23, 2017 by Laura Lam

The Mortgage Bankers Association (MBA) has looked into the future, and they are not complaining.  “We’re expecting steady, modest growth in the U.S. economy,” said MBA Vice President of Research & Economics Lynn Fisher at the MBA National Mortgage Servicing Conference & Expo. “We’re seeing real economic growth in a number of indicators.” Fisher noted that as federal unemployment rates decline, employers may find difficulty in attracting workers to meet specific skill-sets. “This in turn is going to drive up wages,” she said. “Over the next two years, unemployment will fall to around 4.5%, suggesting further tightening on the labor front.” Fisher…

Underwater Home Loans Sink to New Low

Posted on February 20, 2017 by Laura Lam

At the end of the year, 2016 held 1 million less seriously underwater properties than the year before, according to the Year-End 2016 U.S. Home Equity and Underwater Report from ATTOM Data Solutions, a fused property database.  Rising home prices and low inventory prices caused home buyers to struggle, however current homeowners reaped the benefits of the increased equity. At the end of 2016, 5.4 million properties were seriously underwater, the combined loan amount secured by the property was at least 25% higher than the property’s estimated market value, according to the report. “Since home prices bottomed out nationwide in the first…

Down Payments Eat Up Large Chunk of Income

Posted on January 31, 2017 by Laura Lam

To meet a 20% down payment, homebuyers on average have to spend more than two-thirds of the average annual income, according to a report from Zillow.  A 20% down payment for a median-price home valued at $192,500 will cost $38,500. In some of the larger and more expensive markets, including the San Francisco and Los Angeles metropolitan areas, buyers may need to pay more than 180% of the average annual income to afford a 20% down payment on a median-priced home. “Saving enough cash for a down payment is a major barrier to homeownership, especially in expensive markets, where a…

High Rents and Student Debt Hinder Homeownership

Posted on October 18, 2016 by Laura Lam

Higher rental costs and student loan debt continue to prevent many Americans from purchasing a home, according to the results of a survey from NeighborWorks America.  NeighborWorks reported that 56% of survey respondents said that rents are too high where they live for them to be able to save enough to buy a home. Similarly, 53% of potential homebuyers with student loan debt said that their debt was either somewhat or very much an obstacle to that purchase.  Another 30% of respondents said they knew someone who delayed a home purchase because of their student loan debt. The two issues…