Discussing mortgage delinquencies, foreclosures, home prices, housing confidence, home owner opinion of the value of their home approaches reality, and what most people want in their dream home!
Mortgage Delinquencies At lowest Level Since 2007
In April 2018, 4.2 percent of home mortgages were in some stage of delinquency, down from 4.8 percent a year earlier and the lowest for any month since March 2007, when it was 4.2 percent.
Great news since this should mean we will see fewer foreclosures! Speaking of foreclosures…
Foreclosures Down 15%
According to Attom Data Solutions, U.S. properties with foreclosure filings in the first six months of 2018 were down 15% from the same period a year ago and down 78% from the peak in the first six months of 2010.
While this is great news, this is talking about the entire country. Attom said that 22 states and 88 of the 219 metro areas analyzed saw year-over-year increases in foreclosure starts. This drives home how national statistics can fool you about what is happening on a local level.
America’s Dream Home
Northshore Fireplace conducted a survey of 2000 Americans to find out how they see their dream home:
- 75% said that owning a home is a lifestyle choice not a necessity or requirement to a “good life”
- 64% believe they will be able to obtain their dream home in their lifetime
- 46% said they would spend the most time in their living room or family room
- The most desired size for dream homes averages 2,195 square feet
- Only 15% said that being close to good schools is important
- Only 11% want to be close to entertainment and nightlife
- The most important feature is “a view with peace and quiet”
- The most desired luxury is “land and privacy”
- The 3 most popular words to describe a dream home are “comfortable, cozy and spacious”
What is your idea of a dream home? You may not be able to buy your dream home today BUT you may be closer to being able to buying your first home than you think!
Check out the statistics of first time home buyers from NAR’s latest Profile of Home Buyers and Sellers:
You may find some similarities between yourself and recent first time home buyers. Even if there are any differences, buying a home could still make sense for you!
I strongly suggest sitting down with a mortgage professional ASAP to discuss your options!
Housing Confidence Decreases
From Fannie Mae’s latest Home Purchase Sentiment Index:
- 28% say it is a good time to buy a home
- 47% say it is a good time to sell a home
- 46% say home prices will go up in the next 12 months
- 76% say they are not concerned about losing their job
- 19% say their household income is significantly higher than it was 12 months ago
Doug Duncan, senior vice president and chief economist at Fannie Mae, said:
After several years of steadily climbing, HPSI’s slowing upward trend suggests the index may be reaching a plateau. Tight supply and lackluster income growth continue to weigh on housing activity, and consumer expectations for home price growth over the next 12 months have moderated. However, consumers expressed increased optimism about the direction of the economy and their personal financial situations over the next 12 months, with both measures matching previous survey highs this month.
The number of people thinking it is a good time to sell is lower than I feel it should be. It may be lower because of the VERY low level of people that think it is a good time to buy a home.
Owner Opinion’s of Home Values Closest to Reality Since 2015
From Quicken Loans:
Appraisal values and what homeowners expected them to be are at their closest point since February 2015. The National Quicken Loans Home Price Perception Index reported that the average home appraisal in June was only 0.25 percent lower than what the owners estimated.
Home values increased 4.57% year-over-year according to Quicken Loans.
It is VERY important that anyone looking to sell a home understand that correctly pricing your home is key to a successful sale. Over pricing your home is one of the worst things you can do when selling a home!
Please read Do You Want to List Your Home Or Sell It?
Home Prices to Increase 4.4% in the Next 12 Months
Veros just released its Q2 2018 VeroFORECAST, and they predict that over the next 12 months residential market values will appreciate at a national average of 4.4%.
A very optimistic forecast but as with all national reports, this does NOT reflect what we can expect in our local markets. I think that as long as the economy remains healthy, we will see home values in the Anderson SC area to increase about 3%.
But the rate of home value appreciation in our area will vary greatly depending on the type/price of home and the amount of demand/supply. Some price ranges do not have enough supply compared to the very strong demand and this will cause home prices to grow more quickly.
Well that is all I have time for today! If you enjoyed this post, please share it on Fecebook, Twitter or Google! And as always, if you have any questions about real estate in the Anderson SC area, email me!