New findings from the National Association of Realtors show a high number of Americans, 75 percent, believe now is a good time to sell a house, while 68 percent think it is a good time to buy. Also, a majority of consumers believe prices have and will continue to increase and that homeownership strengthens the nation's communities. This information comes from NAR's second quarter Housing Opportunities and Market Experience (HOME) survey conducted in April through June and representing 2,707 household responses.
Optimism that now is a good time to buy has not changed from last quarter, with 39 percent who strongly agree and 29 percent who moderately agree that now is a good time to buy. Among renters, however, those positive feelings have fallen significantly from 55 percent in the first quarter to 49 percent in the second quarter. Optimism is highest among older buyers (65 or over) and those living in the South and Midwest regions (73 and 71 percent respectively).
Affordability and low inventory are eroding buyer confidence, according to NAR chief economist Lawrence Yun. "Inventory remains the driving force in real estate, affecting everything from rising prices to household formation. Improving supply conditions is critical to improving buyer optimism and helping to remove some of the barriers holding back potential first-time buyers," said Yun.
As home prices continue to climb across the country, the number of respondents who believe now is a good time to sell remains high with 46 percent strongly agreeing (up from 42 percent last quarter) and 29 percent moderately agreeing. Twenty-nine percent believe now is not a good time to sell a home.
When asked about home prices in their communities, 68 percent said they believe home prices have gone up in their area in the last 12 months, up from 63 percent last quarter. Fifty-five percent also believe home prices will continue to increase in their communities in the next six months, also up from 54 percent in the previous quarter.
Nearly 58 percent of households believe the economy is improving, slightly down from 60 percent last quarter, but up from 54 percent last year. People in rural areas are more likely to view the economy as improving (63 percent) than in urban areas (51 percent).
Forty-six percent of those surveyed say they do not believe it would be difficult to obtain a mortgage, up from 36 percent last quarter. "This is most likely a reflection of the current positive outlook on the direction of the economy," said Yun. "Healthy job creation and faster wage growth mean that homeownership is viewed as a more attainable goal than it was a year ago."
Asked if a high rate of homeownership strengthens a community, 67 percent of those surveyed said homeownership strengthens communities a great deal. That number jumps to 76 percent for current homeowners.
"There is nothing better than owning your own home and establishing roots in a community," said Bill Moody, president of the Silicon Valley Association of Realtors. "Homeowners - more than renters - have a greater stake in their community. They are more likely to be engaged in and support neighborhood activities and upkeep. Families build lifelong bonds that create strong foundations for future generations."
Respondents were also asked if homeownership will be easier or harder to attain for future generations. Seventy-three percent believe that it will be harder for future generations to purchase a home, compared to only 11 percent who think it will be easier. Seventy-four percent of respondents age 34 or under believe it will be more difficult to become homeowners.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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