Less Q1 Optimism on Homebuying

Phil Hall

Mar 26, 2018

Optimism related to potential homeownership waned during the first quarter, according to the National Association of Realtors’ (NAR) latest Housing Opportunities and Market Experience (HOME) survey.

In a poll of roughly 2,700 households, 68 percent of homeowner respondents during the first quarter felt that now is a good time to buy a home, down from 72 percent in the fourth quarter of 2017. The first quarter level is the lowest share in the past two years. Among renters, 55 percent felt strongly about homebuying at this time, down from 60 percent in the previous quarter.

However, the share of homeowners who believe now is a good time to sell increased to 74 percent in the first quarter from 71 percent in the previous quarter. The first quarter response is the second highest since the HOME survey began in December 2015.

Among non-homeowners, the main factors preventing them from saving for a down payment were limited income (47 percent), student loan debt (30 percent), rising rents (28 percent) and health and medical costs (14 percent); 14 percent said that nothing was holding them back from saving for a down payment. Also, 29 percent said they lacked the financial knowledge or did not know the first step needed to qualify for a mortgage.

“It’s never too early for those wanting to own a home in the future to sit down with a lender to discuss their current financial situation,” said NAR President Elizabeth Mendenhall, who is also CEO of RE/MAX Boone Realty in Columbia, Mo. “Homeownership could be a more attainable goal once an interested buyer finds out how much they can afford to buy, as well as what steps, if any, are needed to improve their chances of obtaining a mortgage.”

Link copied

Published

Mar 26, 2018

Analysis and Data

Resilient Labor Market Adds 339K Jobs In May

Despite 15% increase in new jobs from April, unemployment rate rises to 3.7%.

The U.S. labor market continues to defy efforts to slow the economy, adding a surprising 339,000 jobs in May, nearly double the expectations of economists, the government said Friday. Despite the biggest increase in employment since January, the unemployment rate rose by 3 ...

Regulation and Compliance

6 Federal Agencies Seek Comment On Proposed Rule For AVMs

The rule is intended to ensure the credibility and integrity of Automated Valuation Models.

Six federal regulatory agencies on Thursday requested public comment on a proposed rule designed to ensure the credibility and integrity of models used in automated real estate valuations.  The proposed rule would implement quality control standards for automated valua...