Housing outlook for 2017? More affluent does not equate more optimism

Housing outlook for 2017? More affluent does not equate more optimism

In January 2017, ValueInsured released its latest Housing Confidence Index that reported a slight decline in Americans’ overall housing confidence. The drop was driven by existing homeowners, who are not as confident now as they were in Fall 2016 that their home would be worth as much as what they paid for. This makes sense, since ValueInsured’s fall index was reported in early September, some of the country’s most overheated markets have stabilized and there were steady reports of cooling home prices throughout the remainder of 2016. This was partly driven by the fall 2016 interest rates hike, election uncertainty, and by buyers’ pricing fatigue.

Dissecting the January Modern Homebuyer Survey data further, what’s particularly interesting is that more affluent American households – typically more confident in housing given their stronger purchasing power – are not reporting the highest housing confidence

​​More first-time buyers confident homeownership is within reach in 2017

​​More first-time buyers confident homeownership is within reach in 2017

In the past two years, as the economy improved and home mortgage interest rates stayed in record lows, one key factor that had kept housing growth from kicking up to the next gear was the stagnation of entrance by Millennial first-time homebuyers. American homeownership rate in 2016 was lowest in five decades. The primary cause was attributed to Millennials – an age group that traditionally supplied a steady stream of first-time homebuyers – whose homeownership rate dropped to the lowest recorded at 34.1%. Well-documented explanations for this historically low rate include heavy student-loan debts, growing trend to boomerang back to parents’ homes, delay of marriage, increased career mobility and other factors that delay homeownership. 

However, Millennials have not lost their desire to own a home...

In First 2017 Survey Released Post-Inauguration, Americans Cautiously Optimistic in Housing Market

In First 2017 Survey Released Post-Inauguration, Americans Cautiously Optimistic in Housing Market

Optimism Driven by First-Time Homebuyers Reports ValueInsured’s Quarterly Index

DALLAS, January 25, 2017 – Americans are starting off 2017 cautiously optimistic about the housing market, reports ValueInsured Modern Homebuyer Survey. The first consumer confidence survey conducted in January and released post-inauguration reveals nearly seven-in-10 Americans (69 percent) believe 2017 will be a better year for the housing market than 2016, despite rising interest rates and a new administration.

Shoppers say will buy a home sooner with down payment protection

Shoppers say will buy a home sooner with down payment protection

In our latest ValueInsured Modern Homebuyer Survey, we learned that most prospective first-time and upgrade homebuyers will buy sooner, if they could be given more confidence about the housing market, and about their odds of preserving their down payment savings. We interviewed 1,013 Americans who were interested in buying a home, and this is what they told us

Homeownership - more than gender and race - help Americans feel confident

Homeownership - more than gender and race - help Americans feel confident

In a recent interview with CNBC regarding the current housing market and homeownership rate, a self-made millionaire and published financial author made the claim that an average homeowner in American today is 38 times wealthier than the average renter. This has what many often call the American Dream – if you have made it in this greatest country in the world, you get to own a piece of its land.

But in recent years, since the housing crisis, this notion has been challenged, and some of the people who have fared most poorly and had the toughest time surviving the financial crisis were Americans who owned homes in 2007-2008. We wanted to know how today’s Americans feel about their wellbeing and how it relates to homeownership, and designed part of our latest ValueInsured Modern Homebuyer Survey to explore exactly that.

Millennial homeowners confident in the long term, but fear housing volatility in the near term

Millennial homeowners confident in the long term, but fear housing volatility in the near term

In each of our recent quarterly ValueInsured Modern Homebuyer Survey, Millennial homeowners have consistently proven to be the most confident consumer segment in the health of our housing market. Compared to the national housing confidence index of 68.9 recorded in September 2016, Millennial homeowners reported an 83.0 point housing confidence in the same index, higher even than the 78.1 recorded for all American homeowners. Millennial homeowners also show remarkable confidence in their own long-term well-being as homeowners, with 90% agreeing “the housing market is headed to a good direction long-term for people like me”, compared to just 38% of their non home-owning peers who say the same.

However, upon further digging into our latest fall survey data, Millennial homeowners do show some cracks in their robust housing confidence.

How Millennials will try to secure their first home despite affordability hurdle

How Millennials will try to secure their first home despite affordability hurdle

There has been a lot of good news in the housing industry lately that Millennials are finally ready to settle down and buy homes. Dubbed the “Millennial Housing Movement”, many analysts expect Millennials will be the ultimate high gear that propels the next housing boom.  Here's some recent coverage: Business Insider, Forbes, and Market Watch.

Millennials have always been the media and business darling not only because our nation has always been youth-obsessed. They are the largest population group at 75.4 million according to the latest Census Bureau, and one quarter of our country’s population. But here’s a well-document problem for Millennials: they tend to be saddled with college debt and are expected to earn less than their parents. This is a key reason – not their rumored fear of commitment – that Millennials have been late to get married, start a family, and to buy their first home.  

From our latest ValueInsured Modern Homebuyer Survey, we learned again, as we did in all our previous quarterly surveys, that Millennials want to own homes.

,

While U.S. Economy Grows, Housing Confidence Remains Flat

,
While U.S. Economy Grows, Housing Confidence Remains Flat

Millennials Worry More Than Others About Home Buying, According to ValueInsured's Quarterly Index

DALLAS, Oct. 13, 2016 /PRNewswire/ -- Despite positive economic indicators like record wage growth and falling unemployment, housing confidence remained flat from June through September, according to the new ValueInsured Housing Confidence Index.

Housing confidence rose a mere 0.2 points from June through September to 68.9 on the hundred-point scale. That figure is up 1.9 points since March. A number of factors are likely to blame for the subdued confidence measure, according to Joe Melendez, CEO of ValueInsured.

Cart (0)