In the first quarter of this year, consumer confidence regarding their personal finances and the economy rose, yet this confidence is not translating to optimism that now is a good time to buy a home, according to the National Association of Realtors (NAR) “Housing Opportunities and Marketing Experience” (HOME) survey. <\/p>\n
In fact, positive feelings that it’s a good time to buy a home is at its lowest share in the past two years, and even lower among renters. The strongest concentration of those that did<\/em> feel positive about buying are homeowners in the South and Midwest where housing is more affordable.<\/p>\n The survey also indicates that owners feel positive about selling, while non-homeowners are feeling anxious about qualifying for a loan and saving for their down payment.<\/p>\n NAR Chief Economist, Dr. Lawrence Yun says extremely challenging market conditions to start the year are chipping away at homebuyer optimism. \u201cThe critical shortage of listings in most markets continues to spark a hike in home prices that is not easy for many buyers \u2013 and especially first-time buyers \u2013 to overcome.\u201d <\/p>\n \u201cAdding more fuel to the affordability fire is the fact that mortgage rates have shot up to a four-year high in just a few months,” added Dr. Yun. “Many house hunters are telling Realtors\u00ae that they are dispirited by the stiff competition for the short number of listings they can afford.\u201d<\/p>\n He notes that if more homeowners decided that spring is the best time to list their home (especially after amassing equity), supply conditions would “improve measurably, and ultimately lead to more sales.” We would add that the HOME survey’s confidence indices would also shift. <\/p>\n Consumer confidence is up, but of particular note, non-homeowners are anxious about saving for a down payment. Nearly half indicating limited income was a primary reason, followed by student loan debt (30 percent), rising rents (28 percent), and health expenses (14 percent). Only 14 percent said nothing was holding them back. <\/p>\n The survey also indicates anxiety over qualifying, with 45 percent claiming the reason is income uncertainty. One in three said their credit score would hold them back, and 26 percent said they were carrying too much debt. Nearly one in three said they don’t know the first step they’d need to take in order to qualify, so a lack of financial literacy is holding a portion of the market back. <\/p>\n \u201cIt\u2019s never too early for those wanting to own a home in the future to sit down with a lender to discuss their current financial situation,\u201d said NAR President Elizabeth Mendenhall, a sixth-generation Realtor\u00ae from Columbia, Missouri and CEO of RE\/MAX Boone Realty. \u201cHomeownership could be a more attainable goal once an interested buyer finds out how much they can afford to buy, as well as what steps, if any, are needed to improve their chances of obtaining a mortgage.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" (REAL ESTATE) Consumer confidence is way up about the economy, but many still don’t feel it’s a good time to buy – here’s the data behind this contradiction.<\/p>\n","protected":false},"author":335938,"featured_media":13009,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"wds_primary_category":0,"footnotes":"","jetpack_post_was_ever_published":false,"_links_to":"","_links_to_target":""},"categories":[602],"tags":[323,263,1234],"class_list":["post-13008","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-homeownership","tag-homeownership","tag-nar","tag-real-estate-news"],"jetpack_featured_media_url":"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2018\/03\/hands-heart-house_925x.jpg","jetpack_sharing_enabled":true,"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/13008","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/users\/335938"}],"replies":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/comments?post=13008"}],"version-history":[{"count":2,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/13008\/revisions"}],"predecessor-version":[{"id":13011,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/posts\/13008\/revisions\/13011"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media\/13009"}],"wp:attachment":[{"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/media?parent=13008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/categories?post=13008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theamericangenius.com\/housing\/wp-json\/wp\/v2\/tags?post=13008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}