Affordability causing chasm about buying between homeowners, renters Perfectly Situated Condo has it All Gorgeous ocean & golf course frontage views from this two bedroom, two bath unit located in Keauhou area. Completely remodeled and comes turnkey furnished! Also includes an On-Demand hot water system. This is a vacation rental, so call today to schedule an appointment to see this beautiful unit. $489,950 BROKERS Linda Johnson R, GRI, SFR Specializing in You & Kona Real Estate Cell: 808.989.6155 pprrooppeerrttyy@@hhaawwaaiiii..rrrr..ccoomm •• wwwwww..pprrooppeerrttyyiinnkkoonnaa..ccoomm Open House Saturday July 30th, 10-1 62-2002 Kahena place is the leading full-service Commercial Real Estate fi rm on the Big Island. TCG is looking for potential qualifi ed tenants as well as commercial property owners who need leasing services for their property or a Leasing Agent and Property Manager. They also offer consulting services for commercial real estate issues. Monique Peacock, (PB) • Consulting • Sales/Leasing Services • Property Management WILCOX SEED BUILDING Professional Office Spaces 325-1208 sf. Can be separate or combined www.TCGKona.com PO Box 908, Kailua-Kona, HI 96745 • Offi ce (808) 329-1111 www.TCGKona.com • e-mail: info@TCGKona.com 18 West Hawaii Real Estate | August 3, 2016 Despite lackluster economic growth and stark homeprice appreciation in several parts of the country in recent months, roughly three-quarters of surveyed households still believe now is a good time to buy a home, but there’s a considerable gap in morale between homeowners and renters, according to the latest installment of the National Association of Realtors Housing Opportunities and Market Experience (HOME) survey. The survey also found that roughly half of young adults with student debt are uncomfortable about taking on a mortgage. In NAR’s second quarter HOME consumer survey, respondents were asked about their confidence in the U.S. economy and various questions about their housing expectations, including questions on if carrying student debt is tempering their ability and appetite to take on mortgage debt. Through the first half of the year, NAR’s survey found the share of homeowners and renters who believe now is a good time to buy a home is mostly holding steady, with 80 percent of homeowners (82 percent in March) and 62 percent of renters (unchanged from last quarter) saying it’s a good time to buy. However, the share of renters who think so is down from 68 percent in December 2015, and those under 35 were the least confident that now is a good time to buy. Lawrence Yun, NAR chief economist, said the survey brings to focus the ongoing disparity in buyer confidence between current homeowners and renters. “Existing-home prices surpassed their all-time peak this spring and have climbed on average over 5 percent nationally through the first five months of the year and even faster in areas with severe supply shortages,” he said. “Most homeowners appear to realize that if they’re ready to sell, they’ll likely find a buyer rather quickly and be able to use the sizeable equity they’ve accumulated in recent years towards their next home purchase. Meanwhile, renters interested in buying continue to face minimal choices, strong competition and home prices growing faster than their incomes.” Adds Yun, “Given these affordability pressures, it’s no surprise respondents earning over $100,000 and those living in the Midwest — the most affordable region of the country — are the most optimistic about buying right now.” This quarter’s HOME survey also revealed that carrying student debt is causing many to be uneasy about taking on additional debt. According to the survey, roughly two-thirds of non-homeowners and half of respondents under 35 with student debt said they aren’t comfortable also having a mortgage. Furthermore, of those with student debt, non-homeowners and younger adults were less likely to believe they’d be able to qualify for a mortgage if they applied. “It’s becoming very evident from this survey and our research released last month that the financial and emotional impact of repaying student debt is contributing to a delay in purchasing a home for many would-be buyers,” adds Yun. “At a time of quickly rising rents, mortgage rates at all-time lows and increasing housing wealth, a lot of young adults in their prime buying years are struggling to enter the market and are ultimately missing out on the stability and wealth accumulation that owning a home can provide.” Mostly unchanged attitudes about direction of U.S. economy, personal financial outlook “Most homeowners appear to realize that if they’re ready to sell, they’ll likely find a buyer rather quickly and be able to use the sizeable equity they’ve accumulated in recent years towards their next home purchase. Meanwhile, renters interested in buying continue to face minimal choices, strong competition and home prices growing faster than their incomes.” – Lawrence Yun, NAR Chief Economist A tick in the survey is improving mostly HOME Renters,areas, and most optimistic.nearly rural areas is improving. Reflecting confidence situation months,Personal all households 57.7 in is unchanged Expanding good time With in most selling current believe compared year (56
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