West Hawaii Real Estate | October 12, 2018 15
Homeowners ready to sell in the third quarter of 2018, says Realtor survey
rise 2
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Realtors
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residential
industries.
New findings from the
National Association
of Realtors show that a
record high 77 percent
of Americans believe that now is a
good time to sell a house, while those
that think now is a good time to buy
continues to decline.
NAR’s third quarter Housing
Opportunities and Market Experience
(HOME) survey also found that a
majority of consumers believe prices
have and will continue to rise, while
the quality of schools is a critical
factor in deciding whether or not to
buy a home.
Half of all Americans strongly
believe now is a good time to sell
(compared to 46 percent last quarter),
while 27 percent moderately believe
this is the right time (29 percent last
quarter). Respondents in the West are
the most likely to think now is a good
time (85 percent) as are those who
currently own a home (82 percent).
Only 22 percent believe that now is
not a good time to sell, down from 29
percent in the second quarter.
Optimism that now is a good
time to buy has declined slightly
from last quarter. Sixty-three percent
of respondents either strongly or
moderately believe that now is a good
time buy compared to 68 percent
last quarter. Among renters, positive
feelings about purchasing continue
to fall, dropping from 49 percent in
the second quarter to 45 percent this
quarter. Optimism is highest among
older U.S. households (65 or over)
and those with a household income of
more than $100,000 a year (70 and 68
percent respectively).
NAR Chief Economist Lawrence
Yun says several consecutive years
of strong home price growth are
enticing homeowners to consider
selling. “Though the vast majority of
consumers believe home prices will
continue to increase or hold steady,
they understand the days of easy, fast
gains could be coming to an end.
Therefore, more are indicating that
it is a good time to sell, which is a
healthy shift in the market.”
Respondents were also asked
about their view of home prices in
their neighborhoods. Seventy percent
believe that home prices have gone
up in their area in the last 12 months,
up from 68 percent in the second
quarter. Fifty-three percent also
believe that home prices will continue
to increase in their communities in the
next six months; this is down from the
last quarter (55 percent).
Consumers feeling positive about
the economy and concerned about
qualifying for a mortgage
A near-record high of 60 percent
of households believe that the
economy is improving – up slightly
from 58 percent last quarter and up
significantly from 53 percent in the
third quarter of 2017. People in a
household income of over $100,000
are more likely to view the economy
as improving (67 percent) compared
with those with an income $50,000
to $100,000 (64 percent) and under
$50,000 (49 percent).
The HOME survey’s monthly
Personal Financial Outlook Index2,
showing respondents’ confidence
that their personal financial situation
will be better in six months, rose
slightly from 62.1 in June to 62.6 in
September. A year ago, the index was
62.0.
Among those who do not currently
own a home, 28 percent of those
surveyed believe that it would be
very difficult to qualify for a mortgage
and 31 percent believe that it would
be somewhat difficult given their
current financial situation (compared
to 26 and 28 percent last month
respectively). “This is most likely a
manifestation of the constantly rising
prices,” said Yun. “As prices rise so do
down payments, making the mortgage
qualifying process more challenging.”
Importance of Highly Rated
Schools, Other Factors in Home
Buying Decision
In this quarter’s survey,
homeowners and non-homeowners
were asked how important high
rated schools are in their home
buying decision. Over two-thirds of
those surveyed said that highly rated
schools were either very or somewhat
important in their decision (47 percent
and 23 percent, respectively).
When asked about what
considerations were taken into
account when choosing a new
neighborhood, 25 percent of
respondents ranked proximity to
friends and family as most important,
followed by proximity to their job
and a short commute (24 percent).
Proximity to friends and family is
most important to those in rural areas
(31 percent) compared to suburban
and urban (25 and 21 percent
respectively).
“When you buy a home, you do
not just buy the house; you buy a
community – neighbors, parks, stores
and schools,” said NAR President
Elizabeth Mendenhall, a sixthgeneration
Realtor from Columbia,
Missouri and CEO of RE/MAX Boone
Realty. “Realtors understand the
unique qualities of the neighborhoods
in their area and can help individual
families find and purchase the right
home in the right neighborhood.”
Respondents were also asked about
the number of homes available for
sale in their communities. Fifty-six
percent of respondents reported
that the number of homes available
for sale in the neighborhood has
remained the same over the past six
months, while 23 percent said they
have observed more homes for sale
than usual.
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