Positive Trends in Housing Confidence.
Though the Real Estate market is quieter than in recent months, there is still a slight upward trend, though I’m not sure how long this will last. I believe low interest rates will remain but the historic lows we’re seeing right now may soon be a thing of the past. Concern created by the Brexit decision has kept interest rates down for the present.
Amid uncertainties around the global economy, national security and the national presidential campaign, Americans’ confidence in the housing market remains sturdy and, in fact, is on the rise, according to the latest ValueInsured Modern Homebuyer Survey.
The ValueInsured Housing Confidence Index was 68.7 points in June, up slightly from 67 points in March. This 1.7-point rise in confidence is consistent with improvements in the government’s June jobs report.
The new ValueInsured Housing Confidence Index is the aggregate of seven multidimensional confidence measures collected through the Modern Homebuyer Survey. The confidence measures quantify American homeowners and non-homeowners’ attitudes on the health of the housing market on both a national and localized level, as well as the notion that home buying is a secure and financially beneficial investment.
Confidence Tempered
Despite the overall strength of the Index, concerns still linger from the housing crisis of 2008. When it comes to buying their first home or upgrading, 63 percent of Americans and 72 percent of millennials say that the 2008 crisis has worried them and impacted their decision. This is the “new normal” of apprehension in homebuying.
When it comes to buying a home, the following factors rose to the top of Americans’ chief concerns as a result of this “new normal”:
- National security: Nearly half of Americans (48 percent) and 61 percent of millennials say that national security is of concern and impacting their home buying decisions.
- Job security/mobility: More than half of Americans (55 percent) and 71 percent of millennials say that the possibility of a job change or loss has made them worried about buying or upgrading.
Among those who want to buy or upgrade to a new home, 68 percent of Americans and 81 percent of millennials say they would buy or upgrade sooner if they had more confidence in the housing market.
“The survey reflects renewed confidence that housing is a smart investment, though it’s tempered by thoughtful consideration of the undeniable risks, especially given the recent uptick in security and economic events in the U.S. and abroad,” says Cleve Bellar, chief marketing officer of ValueInsured. “Those lingering risks, and the traces of doubt, spotlight the need to protect down payments just as securely as financial institutions protect their mortgages.”
Source: ValueInsured.com Reprinted with permission from RISMedia. ©2016. All rights reserved.
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We also have options to help with your closing costs. See the links below or feel free to call or email for additional information: 602-999-0952 / golfarizona@cox.net
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