Tag Archives: Homeowners

Homeowners Ready to Sell in the Third Quarter of 2018, says Realtor® Survey

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Washington, D.C. – September 26, 2018 (nar.realtor) New findings from the National Association of Realtors® show that a record high 77 percent of Americans believe that now is a good time to sell a house, while those that think now is a good time to buy continues to decline.

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NAR’s third quarter Housing Opportunities and Market Experience (HOME) survey(1) also found that a majority of consumers believe prices have and will continue to rise, while the quality of schools is a critical factor in deciding whether or not to buy a home.

Half of all Americans strongly believe now is a good time to sell (compared to 46 percent last quarter), while 27 percent moderately believe this is the right time (29 percent last quarter). Respondents in the West are the most likely to think now is a good time (85 percent) as are those who currently own a home (82 percent). Only 22 percent believe that now is not a good time to sell, down from 29 percent in the second quarter.

Optimism that now is a good time to buy has declined slightly from last quarter. Sixty-three percent of respondents either strongly or moderately believe that now is a good time buy compared to 68 percent last quarter. Among renters, positive feelings about purchasing continue to fall, dropping from 49 percent in the second quarter to 45 percent this quarter. Optimism is highest among older U.S. households (65 or over) and those with a household income of more than $100,000 a year (70 and 68 percent respectively).

NAR Chief Economist Lawrence Yun says several consecutive years of strong home price growth are enticing homeowners to consider selling. “Though the vast majority of consumers believe home prices will continue to increase or hold steady, they understand the days of easy, fast gains could be coming to an end. Therefore, more are indicating that it is a good time to sell, which is a healthy shift in the market.”

Respondents were also asked about their view of home prices in their neighborhoods. Seventy percent believe that home prices have gone up in their area in the last 12 months, up from 68 percent in the second quarter. Fifty-three percent also believe that home prices will continue to increase in their communities in the next six months; this is down from the last quarter (55 percent).

Consumers feeling positive about the economy and concerned about qualifying for a mortgage
A near-record high of 60 percent of households believe that the economy is improving – up slightly from 58 percent last quarter and up significantly from 53 percent in the third quarter of 2017. People in a household income of over $100,000 are more likely to view the economy as improving (67 percent) compared with those with an income $50,000 to $100,000 (64 percent) and under $50,000 (49 percent).

The HOME survey’s monthly Personal Financial Outlook Index(2), showing respondents’ confidence that their personal financial situation will be better in six months, rose slightly from 62.1 in June to 62.6 in September. A year ago, the index was 62.0.

Among those who do not currently own a home, 28 percent of those surveyed believe that it would be very difficult to qualify for a mortgage and 31 percent believe that it would be somewhat difficult given their current financial situation (compared to 26 and 28 percent last month respectively). “This is most likely a manifestation of the constantly rising prices,” said Yun. “As prices rise so do down payments, making the mortgage qualifying process more challenging.”

Importance of Highly Rated Schools, Other Factors in Homebuying Decision
In this quarter’s survey, homeowners and non-homeowners were asked how important high rated schools are in their home buying decision. Over two-thirds of those surveyed said that highly rated schools were either very or somewhat important in their decision (47 percent and 23 percent, respectively).

When asked about what considerations were taken into account when choosing a new neighborhood, 25 percent of respondents ranked proximity to friends and family as most important, followed by proximity to their job and a short commute (24 percent). Proximity to friends and family is most important to those in rural areas (31 percent) compared to suburban and urban (25 and 21 percent respectively).

“When you buy a home, you do not just buy the house; you buy a community – neighbors, parks, stores and schools,” said NAR President Elizabeth Mendenhall, a sixth-generation Realtor® from Columbia, Missouri and CEO of RE/MAX Boone Realty. “Realtors® understand the unique qualities of the neighborhoods in their area and can help individual families find and purchase the right home in the right neighborhood.”

Respondents were also asked about the number of homes available for sale in their communities. Fifty-six percent of respondents reported that the number of homes available for sale in the neighborhood has remained the same over the past six months, while 23 percent said they have observed more homes for sale than usual.

About NAR’s HOME survey
From July through September, 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 representing a total of 2,731 household responses.

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:

Jane Dollinger
(202) 383-1042
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Homeowners Can Pay Nearly $9,500 per Year in Hidden Costs

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Property taxes, homeowners insurance and common maintenance projects can add up to a surprising annual cost

Seattle, WA and San Francisco, CA – Aug. 21, 2018 (PRNewswire) Homeowners can expect to spend about $9,390 every year on costs associated with owning and caring for a home, according to an analysis by Zillow® and Thumbtack.

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When it comes to buying a home, shoppers frequently focus on the sticker price or the monthly mortgage payments, but homeowners are also responsible for additional costs that are often overlooked during the home search, such as property taxes, insurance and maintenance projects.

One-third of buyers say that determining their homebuying budget was a challenge during the home shopping processi. To help understand these additional costs they may face, Zillow and Thumbtack identified several common costs to calculate what homeowners around the country can expect to pay in annual expenses. This analysis also includes utility cost estimates from UtilityScore.

Property taxes, utilities and homeowners insurance are necessary expenses for homeowners. Nationally, these costs add up to $6,327 per year, but can be much higher in more expensive markets. In San Jose, where the typical home is worth $1,287,600, these costs add up to $17,255 per year, the highest of any market analyzed. By contrast, these costs add up to $5,540 annually in Indianapolis, less than one-third of the San Jose total.

Many homeowners also opt to hire professionals for a variety of common home-maintenance projects, including house cleaning, lawn care, carpet cleaning, central air and heating system repairs, gutter cleaning and pressure washing. The nationwide average cost of these tasks is $3,067 per year. Labor costs vary in different parts of the country, so these jobs can be much more expensive depending on where someone lives. In Portland, Oregon, homeowners can expect to pay $3,810 per year for these projects, compared with the $2,570 owners in Miami can expect to spend.

“Ongoing maintenance costs and annual fees are some of the most common surprises for first-time home buyers after they finally become homeowners. While they are shopping, buyers tend to focus on their monthly mortgage payments, but other needs quickly add up after move-in,” said Zillow Senior Economist Aaron Terrazas. “The list price is just the beginning of understanding the costs that come with being a homeowner, and it’s important to understand what other expenses you may have to account for when determining what you can afford.”

“Many basic maintenance costs are often overlooked when calculating the cost of buying a home,” said Lucas Puente, Lead Economist at Thumbtack. “It’s imperative that those looking to buy a home do their homework to avoid any surprising charges.”

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Zillow

Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with great real estate professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow Group’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ: Z and ZG), and headquartered in Seattle.

Zillow is a registered trademark of Zillow, Inc.

Thumbtack

Powering the businesses of hundreds of thousands of local professionals, Thumbtack is one of the largest local services companies in the U.S., offering nearly 1,000 categories, with a working professional in every county in the U.S. Thumbtack has helped customers complete millions of jobs — from plumbing, to catering, to personal training, to math tutoring. Founded in 2008, Thumbtack is headquartered in San Francisco. For more information, please visit: www.thumbtack.com.

(i) https://www.zillow.com/report/2017/buyers/challenges/

More Than 70 Percent of Homeowners Surveyed Have Delayed a Home Repair or Improvement Due to Their Financial Situation

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Nearly Sixty Percent of Homeowners Surveyed only have $5,000 or less to spend on unexpected Home Repair Costs

Riverwoods, IL – June 19, 2018 (BUSINESS WIRE) According to a new study of more than 1,040 American homeowners by Discover Personal Loans, 72 percent have delayed making improvements or repairs to their home due to their financial situation, with 42 percent delaying the project for more than a year. However, when asked whether they were prepared, nearly 54 percent of respondents said they are financially prepared to cover an unexpected home repair.

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When asked how much money they have available to pay for an unexpected repair, nearly three in five (59%) homeowners said they don’t have enough funds to pay for a home repair that costs more than $5,000. That number goes up among millennial homeowners (aged 18-34), with 79 percent not being able to cover the same amount.

According to The True Cost of Home Improvement report by Home Advisor, homeowners who don’t have at least $5,000 may not be able to cover some of the most basic home repairs. Larger repairs such as installing an AC unit or new roof can cost up to $10,000 and over $12,000(1) respectively.

In addition, planning and budgeting for home repairs appears to be a challenge for homeowners surveyed. Nearly one-third (30 percent) of homeowners said that their last unexpected home repair cost more than what they expected.

“The survey indicates that a significant majority delay home repairs and remodels because of limited savings,” said Dan Matysik, vice president of Discover Personal Loans. “Unfortunately, these delays may cost homeowners more in the long-run with additional repairs. If an unexpected home expense arises, homeowners should consider looking into fixed-rate funding options that provide quick access to funds, such as personal loans, to help complete their projects.”

Interestingly, responses to the survey questions were fairly similar across income brackets. For example, 50 percent of homeowners that earned less than $40,000 delayed a home improvement or repair for more than a year as compared to 46 percent among those making $40,000 to $80,000. Additionally, 34 percent of homeowners that earned more than $80,000 delayed a home improvement or repair for more than a year.

About Discover

Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America’s cash rewards pioneer, and offers private student loans, personal loans, home equity loans, checking and savings accounts and certificates of deposit through its direct banking business. It operates the Discover Global Network comprised of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation’s leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in 190 countries and territories. For more information, visit www.discover.com/company.

ABOUT SURVEY

All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1045 adults who are homeowners. Fieldwork was undertaken between 22nd – 24th May 2018. The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18+).

1. https://www.homeadvisor.com/r/true-cost-of-home-improvement/

Media Contact:

Sarah Grage Silberman
Discover
sarahgragesilberman@discover.com
(224) 405-6029