Fannie Survey Finds Home Owners Are Skeptical
The housing crisis has changed how Americans view homeownership, according to a survey of public attitudes by Fannie Mae.
The number of people who view homeownership as a safe investment declined from 83 percent in 2003 to 70 percent in 2009. In addition:
* 48 percent of those surveyed said banks should foreclose on people who don’t pay their mortgages. 53 percent blamed borrowers – instead of banks – for taking out bigger loans than they could afford.
* 15 percent of respondents said it is acceptable for borrowers who are underwater to walk away.
Source: The Washington Post, Renae Merle (04/06/2010)
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Homeownership Rate Declines
The percentage of American home owners fell to 67.3 percent at the end of the fourth quarter of 2009, the lowest percentage since the second quarter of 2000.
The homeownership rate reached a high of 69 percent in 2004, fueled by low interest rates and easy credit. But the rate began to fall in 2006 as some owners failed to make their payments and faced foreclosure. Since then nearly 4 million homes have been lost to foreclosure.
“The homeownership data I think really just underscores how this country as a whole became obsessed with getting people into homes,” says Mike Larson, real estate and interest rate analyst at Weiss Research Inc., an investment-research firm. “You can do all kinds of things to get people into a house, which we did; the real problem is making it so they can stay there.”
Source: The Wall Street Journal, Sara Murray and Jeff Bater (02/03/2010)
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
What Will the Market’s New Normal Be?
In a new study, “Housing in America: The Next Decade,” Urban Land Institute senior resident fellow John McIlwain says the housing market will not return to what it was prior to the downturn but rather that a “new normal” will take its place.
He expects another 10 percent decrease in residential prices this year, a jump in the number of borrowers abandoning “underwater” mortgages, and a change in consumer perceptions of homeownership.
“The emotional impact on the children and parents and disillusion about the ‘joys’ of homeownership will be intense; new attitudes to homeownership and the American dream will emerge,” McIlwain writes.
He expects home price appreciation to hover around 1 percent or 2 percent per year after the market recovers and the national homeownership rate to drop from 67 percent currently to 62 percent by 2020.
In the coming decade, McIlwain expects the following:
* Older baby boomers to move to urban, mixed-use, mixed-age centers near family instead of retiring to Sun Belt communities;
* Immigrants to snub the suburbs in favor of more close-knit communities;
* Younger boomers to face the challenges of lost home equity and a smaller pool of move-up buyers;
* Generation Y to rent for long periods by choice or because they are paying off student loans or have stagnant incomes.
Source: Inman News (02/01/10)
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Homeownership Still A Good Investment
The American dream of homeownership is still a good bet, financial advisors say firmly.
Despite the downturn in the last couple of years, homes have still appreciated an average of 4 percent a year since World War II. Plus, it’s a leveraged investment; a 10 percent down payment yields a 1,000 percent return if the price of the home doubles.
There are also valuable intangibles. Owning a home provides independence, security, community, and a roof over the owner’s head. No one can say that about investing in stock.
Source: Associated Press, Dave Carpenter (10/12/2009)
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Homeownership Dips to Six-Year Low
Homeownership declined to 66.6 percent last year, the lowest level in six years, according to the U.S. Census Bureau, which released its American Community Survey on Monday.
Homeownership fell the most for Asians, dropping 1.24 percentage points to 59.4, largely because about one-third of Asians live in foreclosure-prone California.
Homeownership for African-Americans declined 0.88 percentage points to 45.6 percent. Hispanic ownership declined 0.80 percentage points to 49.1 percent, and whites’ ownership was down 0.40 to 73.4 percent.
Source: The Associated Press, Alex Veiga
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
Study: Americans Still Want to Be Home Owners
Despite all of the bad news in the media about homeownership and mortgages, most Americans still believe buying a home is a great investment, according to a new study commissioned by Bankrate.com.
Among the findings from the study:
* 92 percent say that a home is a good investment for the future.
* 48 percent worry about losing or being unable to afford their homes.
“These results provide an interesting illustration of the public’s mindset in a difficult economy,” says Julie Bandy, editor in chief at Bankrate. “While nine out of 10 still believe in the American dream of homeownership, nearly half worry about losing their homes.”
Source: Bankrate.com (08/18/2009)
Front Gate Properties, We’re selling the BEST Real Estate in Aiken, SC.
