The new housing buzzword: Uncertainty

The new housing buzzword: Uncertainty

While both have been effective wealth builders for Americans over the long term, neither stock nor home prices has historically gone up in an ascending straight line. The events in the past week were once again a reminder. As if flipping a switch, a strong equities market turned into a volatile, uncertain market overnight.

The same could happen to the housing industry. Up until now, the bullish stock and housing market were both in large part propelled by historically low interest rates. With more rate hikes on the horizon, the stock market got spooked. One could argue rising interest rates should have even stronger effects on the real estate market, after all, home prices are already high and considered "overvalued" in many major markets; rising interest rates could further strain affordability issues already plaguing homebuyers.

Home buying gifts: millennials like them more than their parents

Home buying gifts: millennials like them more than their parents

Most of us have heard this data point: more Millennials are now living at home with their parents than in any other living arrangements, or in any other time in modern history. Last year, the US Census estimated that one in three Millennials – or 24 million 18- to 34-year-olds – live in their parents’ home. 

It’s fair to say Millennials’ parents have been generous with them. And that generosity extends beyond sharing their home well into a child’s adulthood. Sometimes, parents help their adult child buy a home by providing financial assistance. In ValueInsured’s latest (Q4 2017) Modern Homebuyer Survey, 17% of all surveyed Millennial homebuyers say they plan to rely on a loan or a gift from family member(s) to fund the majority of their down payment. It was recently reported that nearly 1 in 4 (23%) of all purchase loan originations in the U.S. now require a non-spouse co-borrower(s)’ – in most cases a parent’s – credit to afford the loan approved.

Buying today means buying high, say most homebuyers and owners

Buying today means buying high, say most homebuyers and owners

Earlier this week, a “rare bear” who caught national attention by accurately predicting the last housing crash in 2005 returned to the headlines. The famed money manager sounded the alarm that current housing "valuation extreme" looks a lot like it is 2005 all over. And he used the b-word, cautioning homebuyers are again in denial of a bubble just as they did before 2007. 

There are no doubt both many bear and bull economists right now, each with their own opinions on the subject. But, to the non-economist homebuyers, this is all just more conflicting noise that impacts their confidence and decision making.

Is the American housing market healthy?

Is the American housing market healthy?

Last month, Fannie Mae – a perennially reliable source we trust – found a 5 percent-point drop in Americans’ home buying confidence from a month prior, and an 8 percent-point drop from a year ago. At the same time, reported sentiment of “now as a good time to sell a home” shot up 21 percentage points year-over-year.

We are also hearing more about emerging housing trends that some might consider unconventional: dramatic increase in second units of housing built in a relative’s backyard, rising desirability of living in a trailer park. These – along with tiny homes, among other new home-buying trends – may be results of decreasing housing affordability, but do they indicate the market is unhealthy?

What do homebuyers think of the mortgage industry?

What do homebuyers think of the mortgage industry?

It’s a popular time for new year resolution, so how about a little self-assessment of the mortgage industry? We have always wondered what homebuyers think of mortgage lending, so we asked 1,019 of them for some feedback in the latest ValueInsured Modern Homebuyer Survey.

Spoiler alert: it’s not unilaterally glowing, but when homebuyers speak up, and when we listen, it could help inform the long-term success of any lender.

2018 housing off to a confusing start + 5 factors that can make it worse

2018 housing off to a confusing start + 5 factors that can make it worse

Welcome to 2018 and Happy New Year!

What a fantastic year we had in housing for 2017 (unless you were a buyer). Interest rates stayed low (then began to rise toward the end), home prices broke record for many major markets (but according to CoreLogic, many are overvalued), and the mortgage industry had a good year in spite of lower refinance activities (however, profit margins are narrowing)…So, it was a good housing year, but not without many caveats. 

Millennials may be sacrificing privacy + freedom to afford their first home

Millennials may be sacrificing privacy + freedom to afford their first home

This week we have interesting new data on Millennial first-time homeownership that has not been frequently addressed in the press. We all know about Millennials who live in their parents home well into their thirties as byproduct of today’s unaffordable home prices and back-breaking student loan debts. In fact, at last count, 4 in 10 American Millennials now live in their parents’ home, the highest rate in 75 years and 10% higher than a decade ago. In some state, e.g, New Jersey, nearly half (47%) of all Millennials live in their parents’ home at the end of 2016.

It would appear then the ultimate goal for many Millennials would be to own their own home, and to finally obtain their much craved freedom, privacy and autonomy. New data shows this statement may only be half true.

RewardExpert - Safeguard Your Financial Investment with ValueInsured

RewardExpert - Safeguard Your Financial Investment with ValueInsured

It’s a seller’s market across much of the U.S. thanks to brisk growth in home prices and low for-sale inventory in many areas. While that’s great news for homeowners who want to enjoy the financial benefits of increasing equity—such as refinancing to lower mortgage payments or even take out cash—it’s bad news for buyers, many of whom are afraid to make the largest investment of their lives at what could be the apex of another real estate bubble.

In fact, though the Fall 2017 Modern Homebuyer Survey from ValueInsured revealed that 79 percent of homeowners believe now is a good time to sell, only 57 percent of the 66 percent who are interested in selling think they’ll actually be able to do so within the next three years.

“This dichotomy is caused by greed and fear,” Joe Melendez, founder and CEO of ValueInsured, explained to Reward Expert. “On the greed side of the equation, people realize that prices have recovered, and in some markets, are at all-time highs. However, they also realize that if they want to buy a new house, it’s going to cost them more than the one they just sold. So, they decide to just stay put. That’s the fear element.”

Fortunately, Melendez says there is a way to take fear out of the equation: ValueInsured +Plus Down Payment Protection.

Cart (0)