8 West Hawaii Real Estate | September 28, 2016 Lofty home-price growth and Affordability concerns ensnaring renters, survey shows tight supply are leading to softening confidence among renters about whether it’s a good time to buy a home, according to the latest installment of the National Association of Realtors Housing Opportunities and Market Experience (HOME) Survey. The survey also found that a misconception about how much of a down payment is needed to buy could be unnecessarily delaying some qualified young adults from entering the market. In NAR’s third quarter HOME consumer survey, respondents were asked about their confidence in the U.S. economy and various questions about their housing expectations, including a series of questions related to down payments and the amount of money they believe they need to purchase a home. Heading into the autumn months, the share of homeowners and renters who believe now is a good time to buy remains at a solid majority but has crept downward since the 2/2 condo has golf course Views and 2 lanais. 3 pools, spa, tennis courts, guard gated, walking trails. Walk to Keauhou Bay, best beaches, shopping and entertainment. Great Opportunity. Island living at its best! Recently updated 4 bedroom 4.5 bath estate has exquisitely appointed architecture with resort quality features. Wellthought out fl oorplan that allows separate living areas or combined quarters to accommodate an entire household. 83 acres of great mixeduse project property. Ocean Views, Zoned MG-3A, commercial- Industrial. This is absolutely North Kona’s BEST Commercial Opportunity! 3/2 condo with spectacular ocean views! 3 pools and spa, tennis courts, guard gated, walking trails. Walking distance to Keauhou Bay, best beaches, shopping and entertainment. Located nearly on the golf course. Life is good at Kanaloa! 78-6831 ALII DR. STE. 163, KAILUA-KONA HI 96740 Each Offi ce is Independently Owned and Operated. Unique beach cottage with unobstructed ocean views! House sits directly across Ali‘i Dr. from Kahalu’u Beach and iconic St. Peter’s Church. This beach gem is recently remodeled with NEW roof, paint, water heater, 200 amp electric panel, stove, fridge & washer/dryer. John Miller Vice President, R(s) & Pam Miller, Broker John@LiveInKona.com | 808 315-5501 Pam@LiveInKona.com | 808 936-9997 KANALOA AT KONA GOLF COURSE VIEW MLS# 297117 $435,000 KE ALOHI KAI PINEAPPLE HALE MLS# 299544 $1,790,000 KANALOA AT KONA OCEAN FRONT MLS# 296367 $920,000 KAHALUU BEACH LOTS DIRECT OCEAN VIEWS MLS# 299512 $749,900 KAHAKAI ESTATES PEEK OCEAN VIEWS MLS# 295600 $759,000 IN ESCROW 3/2.5 w/Pool. NEW: Granite, Tiger hardwood, Carpet, Travertine, Paint, Ovens & Cooktop. 33,000+ sq. ft. lot has peek ocean views. Spacious rooms with walk in closets. 3 acre park + close to beaches & town O‘OMA 83 ACRES QUEEN K FRONTAGE MLS# 269612 $15,000,000 NEW LISTING NEW LISTING beginning of this year. Seventy-eight percent of homeowners (80 percent in June; 82 percent in March) and 60 percent of renters (62 percent in the previous two quarters) said it’s a good time to buy. In the inaugural HOME survey in December 2015, 68 percent of renters said it was a good time to buy. Lawrence Yun, NAR chief economist, said it’s clear the ongoing run-up in home prices and severe inventory shortages in a large portion of the country are hitting consumer psyche – especially among renters. “This summer’s historically low mortgage rates injected some additional demand into the market, but the dearth of homes for sale continues to keep a lid on sales but not prices,” he said. “Given the stiff competition and limited homes available at the lower end of the market, it’s not surprising at all that those under the age of 34 and in the West are the least confident about it being a good time to buy.” Added Yun, “Very affordable mortgage rates and strong job gains among young adults should be translating to a higher rate of homeownership. It’s not, and as a result, sales to first-time buyers remain stuck below a third of all sale.” This quarter’s HOME survey also found that awareness of low-downpayment mortgage options was scarce across all ages, income brackets and education levels. Fewer than 20 percent in each group indicated that they need 10 percent or less to finance their home purchase. Those ages 65 and older (43 percent) and under the age of 35 (37 percent) were the most likely to believe that they need more than 20 percent. “It’s possible some of the hesitation about buying right now among young adults is from them not realizing there are mortgage financing options available that do not require a 20 percent down payment, which would be north of $100,000 in some expensive areas in the country,” says Yun. “In fact, most first-time buyers put down much less. In the 35 year history of NAR’s Profile of Home Buyers and Sellers – the longest-running survey series of national housing data – the average median down payment has been 5 percent for first-time buyers.” With home prices and rents continuing to climb and make it difficult for many to save for a home purchase, one avenue for about a fifth (19 percent) of current homeowners was receiving down payment assistance from a parent or relative. Homeowners ages 34 and under were the most likely to say they received help from a parent or relative (34 percent), along with those living in the Northeast and in urban areas. When it comes to giving aid to prospective buyers, 16 percent said they have helped a child or relative with their down payment. It’s no surprise that the older the respondent, the more likely they were to assist. “Creditworthy prospective buyers should know that many lenders now offer safe, sustainable loans with as little as 3 percent down, and obtaining a mortgage isn’t as difficult as it was in the immediate years after
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