Real Estate Outlook Looks Positive

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Recently a new and updated Homeowner Sentiment Survey has come out from Berkshire Hathaway Home Services demonstrating a continued increase in optimism towards the real estate market in the United States. This survey breaks down the outlooks from various generations; baby boomers, millennial, and Gen-X and how they perceive the current state of the housing market. For example, aspects surrounding future homeownership that include obstacles for prospective homeowners and how various perspectives correlate between them. The respondents were broken down into renters vs. homeowners within their own categories too. While also diving into the positive effects from the historically low interest rates and opinions on where we are currently at and what may happen when rates go up. Another interesting facet of this discussion centered on our current political climate and future housing market with each Presidential candidate…
Optimistic U.S. Real Estate Market Survey
This Tuesday the latest report out from the Berkshire Hathaway Home Services recent Homeowner Sentiment Survey illustrated that the today’s potential homeowners continue to be optimistic about the overall status of the United States real estate market. Those who took the survey cited steadily increased home values, demand, with increasing real estate inventory levels and historically low interest rates as the most important motives for their positive outlook.
Historically Low Interest Rates
Mortgage rates continue to go down making the market more appealing to those who fear it will go up. For example, thirteen percent of millennial respondents stated interest rates were "low" while 53% categorized them as "average." Furthermore, the millennial sample surveys conveyed that their most significant obstacle in purchasing a home was securing a low mortgage rate. On the other hand, Gen-Xer’s stated their largest obstacle to own a home is saving enough cash for a down payment to purchase, while boomers-- jointly with their expanding self-confidence-- stated their most significant difficulty is locating a home that suits their family’s needs and desires.
The possibility of increasing mortgage rates remains an issue among everyone surveyed. Notwithstanding, 81% of future homeowners shared worry this as his or her main concern. “Mortgage rates have been low for so long it’s only reasonable for rates to rise a little at some point down the road,” said Stephen Phillips, president of Berkshire Hathaway Home Services. He also went on to explain that if rates do rise, it makes sense that we could expect to go up more and more over time.
The survey demonstrated to that 66% of existing homeowners see the United States real estate market in a positive light, representing a 5-percentage jump since spring to the highest degree in over a year. This positive outlook grew among baby boomers too. To date, baby boomers have actually been one of the most downhearted groups of people tracked in the ongoing survey. However, this recent sentiment demonstrates that around 60% of boomers view the real estate markets positively, a 6-point increase from spring. They overwhelmingly (72% to be exact) point to interest rates as the primary aspect for their positive outlook.
Among all the groups’ studies, the millennial generations has the most positive outlook towards the http://featureprescott.com real estate market and are the most satisfied with the U.S. economic situation. For example, around 76% of respondents ages 18 to 34 cited housing in a positive fashion. This is up 17% from last springtime and from November. A huge bulk of millennials (85%) additionally believes that having a home is a fundamental part of the "American Dream," a sentiment provided from older generations.
Renters vs. Homeowners Perspectives
Berkshire Hathaway HomeServices' Homeowner Sentiment Survey also asked renters concerning their perspectives on own a home. Many said they've been renting homes for longer periods than originally planned. Those who are leasing for over a year or more claimed their largest challenge is saving cash for a down payment. Potential homeowners leasing from 3-5 years claimed their biggest hurdles were locating the best home that fit their family’s needs. However, most are aiming to save cash and secure low interest rates for their mortgage. Those renting for 6 years (or more) shared more concern and sentiment toward the United States economy and housing market. A number of renters stated they couldn’t qualify for a home due to poor credit ratings and stricter loan guidelines.
Besides saving for a down payment, 37% of millennial renters suggested they have more of an https://www.youtube.com/watch?v=_PQ4533UzSo dream home over a home they can afford. This illustrates that they find the idea of a "starter home" much less desirable than previous generations.
Political Climate
With governmental projects due to increase, the survey asked respondents which candidate should have a more favorable effect on the real estate market. Among current homeowners, 33% said Donald Trump should be better for real estate while 31% picked Hillary Clinton. Amongst potential homeowners, 35% said Clinton should have a more positive effect on housing compared to 27% for Trump.
The majority of Democrats and Republicans surveyed revealed a positive perspective for the U.S. real estate market. Despite political affiliation, respondents showed that credit history influenced by the economic downturn, more stringent financing needs, and also the affordable landscape for available homes are essential challenges for the market.
A number of respondents said they had no idea which Presidential candidate would be best for the future of the http://featureprescott.com/category/blog real estate market and hoped he or she would continue policies that are favorable to housing.