Spring 2018 Modern Homebuyer Survey results next week

Spring 2018 Modern Homebuyer Survey results next week

Despite an active Spring buying season, only 61% of homeowners say that the housing market is heading in a good direction “for people like me.”  But why?  Regardless of other positive or negative news surrounding market excitement or that it is a great time to buy or sell, first-time and upgrade buyers are still viewing the market with trepidation highlighted by a few key areas.  This and other findings will be released next week as part of our latest housing sentiment survey - the quarterly ValueInsured Modern Homebuyer Survey.    ​​​​​​​

Growing obsession with timing the market

Growing obsession with timing the market

Anyone who has come across a “Home Buying for Dummies” or “Investment 101” type book or website should be able to recite this golden rule: don’t try to time the market. While applicable to most investors, this is likely truer for homebuyers, who need a place to live and probably shouldn’t wait. Increasingly, however, they appear to be deviating from the advice.

Perhaps the real surprise – homebuyers are not alone. Homeowners are also growing concerned with timing the market, according to ValueInsured’s latest Modern Homebuyer Survey…

Housing affordability crisis does not spare homeowners

Housing affordability crisis does not spare homeowners

According to ValueInsured’s Q1 2018 Modern Homebuyer Survey, 62% of interested first-time homebuyers – including 65% of Millennials – who plan to buy “in the near future” are concerned they cannot afford a down payment on a home they would like to live in.

But if you think the affordability challenge is exclusive to non-homeowners who wish to enter the elusive homeownership rank, think again. According to ValueInsured’s latest survey on American homebuyers’ confidence and sentiments, even existing homeowners are not immune.

Are 1 in 3 homebuyers in America now buying blind?

Are 1 in 3 homebuyers in America now buying blind?

We admit it, this headline may be a bit sensational; but if you consider the latest homebuyer reports, it may not be that far-fetched after all. 

In 2017, 35% of all homebuyers made an offer on a home sight unseen, according to a Redfin report. The fear of missing out in some hot housing markets seem to have turned more otherwise rational, responsible Americans into risky homebuyers. Throw in sales contracts that also waive home inspections in order to win bidding wars, then yes, in essence, a sizeable number of desperate homebuyers have now been reduced to pretty much buying blind.

But that’s not the whole story. The latest ValueInsured Modern Homebuyer Survey revealed that some homebuyers are also planning a purchase without having basic understanding of new tax laws, interest rate trends and how home value in the areas where they are shopping could potentially be affected.

Why aren’t homeowners tapping into all-time high equity?

Why aren’t homeowners tapping into all-time high equity?

The MBA forecasts refinance volume will decline by 30% in 2018. In other words, while homeowners have a lot more equity at their disposal, fewer will be accessing that available cash. Why?

Amid CoreLogic’s monthly reminders that nearly half of the nation’s top housing markets are overvalued, Fannie Mae’s latest HPSI continues to report housing sentiment “volatility”. According to Fannie Mae’s survey, the net share of respondents who believe home prices will go up in the next 12 months decreased 3 percentage points in March. The latest ValueInsured Modern Homebuyer Survey echoes the same cautiousness in home price sustainability, particularly among homeowners.

 

The secret to unlocking starter-home inventory

The secret to unlocking starter-home inventory

Some experts have theorized that recent years of record-low mortgage rates contributed to reluctance to sell, as homeowners do not want to give up their newly refinanced low mortgages. This is certainly a factor, yet might not be as influential as previously assumed. ValueInsured found in its Modern Homebuyer Survey that only 18% of interested, but hesitant, sellers point to their low mortgage payment as a key reason they are putting off selling. On the other hand, 57% say they are not selling because they are concerned with buying high in today’s low-inventory, inflated market. Chicken, meet egg.

PRMG Rolls Out Their New PRMG +Plus Down Payment Protection Program!

PRMG Rolls Out Their New PRMG +Plus Down Payment Protection Program!

Paramount Residential Mortgage Group, Inc (PRMG) rolls out their PRMG Plus Down Payment Protection program.  When it comes to putting borrowers first, PRMG has got you covered. 

Where title insurance, private mortgage insurance and homeowner’s insurance each make lending more secure for the lenders, only PRMG Plus covers borrowers regardless of what happens in the housing market.

“PRMG understands that buying a home can be a big step for any borrower and that it takes a long time for a borrower to accumulate the necessary down payment to buy a home.  As such, we are pleased to be able to offer PRMG +Plus to them. This is just one more way PRMG looks out for our borrowers, by providing them with the option to protect their initial down payment should they not be able to recoup it when they sell.  This option gives them peace of mind as they invest into their new home, knowing that their down payment is safe, regardless of what happens in the housing market”, said Lara Rausch, PRMG Vice President of Products and Training.

Women more pessimistic about housing market

Women more pessimistic about housing market

Gender disparity in homeownership is not news. Latest available reports in 2016 showed female-owned homes are on average valued less than male-owned homes, and appreciate at a lower rate. Some suggested income disparity correlates with homeownership disparity – makes sense.

The latest ValueInsured Modern Homebuyer Survey found a gender gap might exist not only where home values and ownership are concerned, but in homebuyer psychology and housing confidence as well - with female homebuyers’ pessimism jarring in some measures

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