This is a great article on the state of the housing market on a national level. Many points reflect directly to some of the challenges here in Telluride……enjoy.
Volume 19, Issue 38
For the week of October 19, 2015
A Refreshing Take On The Housing Market
A vast majority of Americans believe that buying a home is a solid financial decision, and most believe they could sell their home for at least its initial purchase price, according to a new survey from the National Association of Realtors®. The 2015 National Housing Pulse Survey also found that a preponderance of Americans think that now is a good to buy a home.
The survey, which measures consumers’ attitudes and concerns about housing issues in the nation’s 50 largest metropolitan statistical areas, found that more than 8 in 10 Americans believe that purchasing a home is a good financial decision, and 68% believe that now is a good time to buy a home. 71 % believe they could sell their house for what they paid for it, a jump of 16% from 2013.
When asked for reasons about why homeownership matters to them, respondents’ answers did not change significantly from past years. Building equity, wanting a stable and safe environment, and having the freedom to choose their neighborhood remain the top three reasons to own a home.
The number of renters who are now thinking about purchasing a home has increased since the last survey in 2013, up from 36% to 39%. 61% of renters stated that owning a home is a priority for their future. According to the survey, 80% of respondents believe that pre-purchase counseling programs and classes are very or somewhat important. 45% of homeowners who said they did not take a counseling program, reported they would have taken part in one had it been easily available to them.
Attitudes about the housing market have improved in recent years. 49 % of respondents indicated that they feel activity in the housing market has increased in the past year, compared to 44% in 2013 and 12% in 2011. 89% expect home sales in their area to either increase or remain the same. Concern about foreclosures has also declined, with only 15% of respondents indicating that foreclosure is a major concern.
In addition to improved attitudes about the housing market, survey participants also showed an improved outlook regarding the economy. Only 36% think that job layoffs and unemployment are a big problem, a substantial drop from 45% in 2013.
Perceived obstacles to homeownership
- 78% of respondents point to college debt and student loans as the main obstacle to making a home purchase affordable.
- 66% of participants said they have a full-time job but still did not make enough money to purchase a home.
- 74% believe they do not have enough money for a down payment and closing costs.
- As the market has improved, concern about the cost of housing has increased. • There is additional concern over the lack of available housing.
- For adult millennials under the age of 35, the burden of student debt is their chief concern, with 86% of respondents naming college debt as an obstacl
The 2015 National Housing Pulse Survey is conducted by American Strategies and Myers Research & Strategic Services for NAR’s Housing Opportunity Program.
Key Economic Reports Released This Week
| RELEASE DATE |
ECONOMIC INDICATORS |
RELEASED BY |
CONSENSUS | Wt. | INFLUENCE ON INTEREST RATES |
| Mon 10/19 10:00 am et |
NAHB Housing Index for October ’15 |
National Association of Home Builders |
64 |
** | Undetermined |
| Mon 10/19 1:00 pm et |
Weekly Bill Auction | Dept. of the Treasury |
N/A |
** |  If strong demand If weak demand |
| Tue 10/20 8:30 am et |
Housing Starts / Permits for September ’15 |
Bureau of the Census Dept. of Commerce |
HS 1.147M |
*** | If above consensus If below consensus |
| Wed 10/21 7:00 am et |
MBA Mtg Apps Survey for week ending 10/16 |
Mortgage Bankers Association of America |
N/A |
* | Undetermined |
| Thu 10/22 8:30 am et |
FHFA House Price Index for September ’15 Y/Y |
Federal Housing Finance Agency |
0.5% |
** | If strong demand If weak demand |
| Thu 10/22 8:30 am et |
Jobless Claims for week ending 10/17 |
Bur. of Labor Statistics Department of Labor |
265k |
* | If above consensus If below consensus |
| Thu 10/22 10:00 am et |
Existing Home Sales for September ’15 |
National Association of Realtors |
5.33M |
*** | If above consensus If below consensus |
| Thu 10/22 10:00 am et |
Leading Economic Indicators for September ‘ 15 |
Bur. of Econ. Analysis Dept. of Commerce |
0.0% |
*** | If above consensus If below consensus |
* Low Importance ** Moderate Importance *** Important **** Very Important