Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights the Case-Shiller index and consumer confidence.
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The December 2011 Realtors Confidence Index survey reports that Realtor® current confidence in the single family existing home sales market and in future prospects is increasing. This is another example of slowly improving conditions that may signify that we are in or approaching the start of the residential real estate market recovery, as discussed by a number of other real estate commentators and economists.
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update discusses personal income.
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update discusses GDP, consumer spending and consumer sentiment.
The December 2011 Realtors Confidence Index survey reports that cash down payments are at or above 20 percent of the home sales price in 34 percent of the transactions. This level of high down payments appears to be relatively high and appears to reflect the effects of overly tight credit markets.
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update discusses jobless claims and new home sales.
- Repeat buyers accounted for 63 percent of the home buying market in the last year according to the most recent Profile of Home Buyers and Sellers.
- The typical age of the current repeat buyer is now 53-years-old, up substantially from 41 years reported in 2001.
- Repeat buyers who are aged 35 to 44 years old shrank to just 19 percent of the market in 2011 from 34 percent in 2001, while the age category of 55 to 64 years doubled to 26 percent in 2011 from 13 percent in 2001.
- For more information on the Profile of Home Buyers and Sellers, click here.
The December 2011 Realtors Confidence Index survey reports that first time buyers are significantly below the expected 40 percent of the market. According to comments received from Realtors® this is due in many cases to unrealistic and overly stringent credit requirements by lenders who have still not recovered from the Great Recession. Buyers need to know that many financial institutions still are providing mortgages on a reasonable basis—including credit unions, community banks, and smaller regional banks. Being turned down by a major national lender simply means that the buyer needs to turn to a different source—possibly the smaller financial institutions.
- The typical seller tenure in home from 2001 to 2008 was 6 years. In 2009, the median years the seller stayed in the home edged up to 7 years. In 2011, the typical seller sold their home after owning it after 9 years.
- Sellers who owned their home for 11 to 15 years, rose from a low of only 10 percent of sellers in 2006 to a high of 18 percent of sellers in 2011.
- The motivations behind selling a home have also changed in recent years. The top reason sellers sold their home in the latest profile was for a job relocation, tied with the home sellers home was too small—accounting for 17 percent of home sellers.
- Five years ago, the number one reason was the home was too small at 19 percent, but job relocation barely was on the radar at just 9 percent of home sellers.
- Among home sellers aged 45 to 54, job relocation out paces reasons to move substantially with 29 percent of home sellers in this age group moving for a job.
- Moving to avoid possibly foreclosure has increased from less than one percent in 2006 to 8 percent of sellers in the 2011 Profile.
- For more information on the Profile of Home Buyers and Sellers, go to: http://www.realtor.org/topics/homebuyers_sellers_profile
Mortgage Rate Forecast
Mortgage rates across the board are at historic lows. Everything, from 1-year adjustable rates to 30-year fixed rates, is lower now than it ever has been in most people’s experience.
However, there are gaps to consider. The 15-year mortgage is at 3.2 percent while the 30-year can be obtained at 3.9 percent, a difference of 70 basis points. The 5-year hybrid ARM is 2.8 percent. The 1-year ARM is of no value since it is also being quoted at 2.8 percent. These rates are based on a Freddie Mac survey of lenders.
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