The NAR Leadership, Finance Committee, and others met in Chicago the week of March 19 to craft the association’s budget. NAR President-elect John Smaby and others talk about the budget goals and why it’s important for NAR members to learn about it and weigh in. Listen to their comments in the following video of that meeting from the NAR YouTube channel.
Washington, D.C. – March 26, 2018 (nar.realtor) New consumer findings from the National Association of Realtors® surprisingly show that while a growing share of households in the first three months of the year feel more confident about the economy and their financial situation, those positive feelings are not translating to positive views that now is a good time to buy a home.
That’s according to NAR’s first quarter Housing Opportunities and Market Experience (HOME) survey(1), which also found that homeowners are increasingly positive about selling, and non-homeowners have anxieties about saving for a down payment and qualifying for a mortgage.
Heading into the busy spring buying season, optimism that now is a good time to buy a home is at its lowest share in the past two years (68 percent; 72 percent last quarter). Among renters, feelings about buying are further diminished (55 percent; 60 percent last quarter). Conversely, those most optimistic about buying are homeowners, older respondents and those living in the more affordable Midwest and South regions.
NAR Chief Economist Lawrence Yun says extremely challenging market conditions to start the year are chipping away at homebuyer optimism. “The critical shortage of listings in most markets continues to spark a hike in home prices that is not easy for many buyers – and especially first-time buyers – to overcome,” he said. “Adding 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. Many house hunters are telling Realtors® that they are dispirited by the stiff competition for the short number of listings they can afford.”
Amidst the ongoing climb in home prices in most markets, the share of homeowners who believe now is a good time to sell increased to 77 percent in the first quarter (76 percent last quarter), which is second only to last year’s third quarter (80 percent) as the highest overall share since the HOME survey began in December 2015. A year ago, 69 percent of homeowners thought it was a good time to sell.
“There’s no question that a majority of homeowners have amassed considerable equity gains since the downturn. Home prices have grown a cumulative 48 percent since 2011 and are up 5.9 percent through the first two months of this year,” said Yun. “Supply conditions would improve measurably, and ultimately lead to more sales, if a growing number of homeowners finally decide that this spring is the time to list their home for sale.”
Consumers feeling more upbeat about the economy and their financial situation
Although optimism was a tad higher a year ago (62 percent), more households in the first quarter of this year (60 percent) believe the economy is improving compared to the fourth quarter of 2017 (52 percent). Homeowners, residents from the South and those from rural areas were the most optimistic about the direction of the economy.
Stronger economic confidence this quarter also led to households having improved feelings about their financial situation. The HOME survey’s monthly Personal Financial Outlook Index(2), showing respondents’ confidence that their financial situation will be better in six months, rose from 59.1 in December to 62.0 in March. A year ago, the index was slightly higher (62.6).
“The jump in optimism to start the year can be attributed to the robust job creation in most of the country, as well as the larger paychecks households are enjoying because of faster wage growth and the recent tax cuts,” said Yun. “These three positives should further ignite buyer demand. However, several metro areas with the healthiest labor markets also have the most severe supply and affordability pressures. This troublesome reality is what’s dampening moods and keeping many would-be buyers at bay.”
Income, debt and anxiety hold back some non-homeowners from buying
In this quarter’s survey, non-homeowners were also asked about the barriers preventing them from saving for a down payment. Limited income (47 percent), student loan debt (30 percent), and rising rents (28 percent) were the top three obstacles cited, followed by health and medical costs (14 percent). Only 14 percent also said that nothing was holding them back from saving for a down payment.
Non-homeowners were also asked for the potential reasons why qualifying for a mortgage would be difficult. Income uncertainty (45 percent), a low credit score (34 percent) and too much debt (26 percent) were mentioned the most. Twenty-nine percent said they lacked the financial knowledge or did not know the first step needed to qualify.
“It’s 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,” said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. “Homeownership 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.”
About NAR’s HOME survey
In January through early March, a sample of U.S. households was surveyed via random-digit dial, including a mix of cell phones and land lines. The survey was conducted by an established survey research firm, TechnoMetrica Market Intelligence. Each month approximately 900 qualified households responded to the survey. The data was compiled for this report and a total of 2,702 household responses are represented.
The National Association of Realtors® is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.
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1. NAR’s Housing Opportunities and Market Experience (HOME) survey tracks topical real estate trends, including current renters and homeowners’ views and aspirations regarding homeownership, whether or not it’s a good time to buy or sell a home, and expectations and experiences in the mortgage market. New questions are added to the survey each quarter to reflect timely topics impacting real estate.
HOME survey data is collected on a monthly basis and will be reported each quarter. New questions will be added to the survey each quarter to reflect timely topics impacting the real estate marketplace.
2. Index ranges between 0 and 100: 0 = all respondents believe their personal financial situation will be worse in 6 months; 50 = all respondents believe their personal financial situation will be about the same in 6 months; 100 = all respondents believe their personal situation will be better in 6 months.
Media Contact:
Adam DeSanctis
(202) 383-1178
Email
Boston, Miami and Baltimore Had the Biggest Improvements in Fresh-Food Access Since 2014; Oklahoma City, Colorado Springs and Indianapolis are Food Deserts, with the Least Access to Healthy Food
SEATTLE, March 26, 2018 /PRNewswire/ — (NASDAQ: RDFN) — New York is the best city for fresh-food access, with 75 percent of its residents living within a five-minute walk of a grocery store or year-round farmers market, followed by Philadelphia (64%) and Miami (57%). This is according to a new report by Redfin (www.redfin.com), the next-generation real estate brokerage, which analyzed Walk Score® data for 48 major U.S. cities, excluding San Francisco and Los Angeles, for which there was not reliable data.
“While visiting my grandfather’s hometown in South Carolina last summer, the only grocery store there had burned down and residents had to travel 20 minutes to the next town to get fresh food,” said Redfin chief economist Nela Richardson. “Many in the community didn’t have transportation or were elderly. Neighbors organized carpools just to make sure people had access to food. This is obviously an extreme example, but it illustrates the importance of this basic amenity that many people take for granted.”
Boston, Miami and Baltimore showed the biggest improvements in access to fresh food since 2014, when Walk Score last reported a comparable ranking.
“Wegmans and Market Basket are two grocery store chains that have been expanding and opening up new shops throughout the city of Boston over the past couple years to meet the growing demand,” said Redfin Boston agent David Pollack. “Many homebuyers put a premium on homes that are in close proximity to supermarkets with fresh produce, in-store cafes and hot food services.”
U.S. Cities with the Best Access to Fresh Food
Redfin’s analysis also identified “food deserts,” cities where few residents have a grocery store or year-round farmers market within a five-minute walk. Oklahoma City topped this list, with just 6 percent of its residents living within a stone’s throw from fresh food, followed by Colorado Springs (6%) and Indianapolis (7%). Of the food deserts we identify below, Tucson and Wichita had the biggest increases in shares of residents with fresh food access since 2014.
“Oklahoma City has been slower than other cities to adapt to having fresh food, gyms and outdoor activities within walking distance,” said local Redfin agent Linda Huynh. “But keep in mind, our city is the eighth largest in the U.S. by land, with just 1.5 million residents. Things are really spread out and mostly accessible by car only.”
U.S. Cities with the Worst Access to Fresh Food (Food Deserts)
To read the full report, please visit: https://www.redfin.com/blog/2018/03/new-york-philadelphia-and-miami-are-2018s-best-cities-for-fresh-food-access.html
About Redfin
Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer’s favor. Founded by software engineers, Redfin has the country’s #1 brokerage website and offers a host of online tools to consumers, including theRedfin Estimate, the automated home-value estimate with the industry’s lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
Redfin Journalist Services:
Jon Whitely
(206) 588-6863
press@redfin.com