Posts Tagged ‘homeownership’

Student Loan Debt Delays Homeownership by 7 Years

Posted on September 22, 2017 by Laura Lam

An overwhelming majority of Millennials with student debt do not own a home, and believe this debt is the cause for the delay.  These are the findings of the 2017 Student Loan Debt and Housing Report from the National Association of Realtors and nonprofit American Student Assistance.  The study revealed the typical delay is about 7 years. But home buying isn’t the only factor affected by student debt. The study showed student debt is holding Millennials back from financial decisions and personal milestones such as saving for retirement, changing careers, continuing their education, marrying and having children. “The tens of thousands of dollars…

Homeownership Up From 50-Year Low

Posted on August 09, 2017 by Laura Lam

The U.S. homeownership rate climbed in the second quarter, a signal that the sharp downward spiral that began after the housing crash is finally reversing.  The homeownership rate hit 63.7% in the second quarter, the Census Bureau said, a jump of nearly a full percentage point from a year ago, when it touched a 50-year low of 62.9%. The share of Americans who own homes has climbed steadily since then.  The homeownership rate also edged up from the first quarter, when it sat at 63.6%. “The damage the [2007-09] great recession has done to the homeownership rate is likely reversing course,” said…

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…