What Renters Are Willing to Sacrifice for Home Ownership
Eighty percent of non-home owners are willing to give up certain luxuries in their life so that they can purchase their dream home, according to a recent survey.
So what are they willing to sacrifice in order to save for purchasing their dream home? The survey finds:
- 50 percent would cut back on dining out.
- 49 percent would trim their shopping for non-essential items, such as clothing, gadgets, and accessories.
- 47 percent would give up luxuries, such as expensive cable packages and trips to the salon.
- 39 percent would cut back on vacations.
- 10 percent would contribute less to their 401(k).
Why are these non-home owners so willing to make such sacrifices now? The survey finds that record-low mortgage rates and appealing home prices are making them want to act faster toward home ownership. In addition, home owners received substantial tax benefits by deducting their mortgage interest payments from their taxes.
If you are thinking of buying or selling, talk to a REALTOR® who can give you the answers you need to make an informed decision.
As always, if I can help with any of your real estate needs, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.
5 Projections of Where the Housing Market’s Headed
Real estate markets across the country are inching their way to a slow recovery after bottoming out, according to several real estate economists who spoke at a forum hosted by the National Association of Real Estate Editors.
National Association of REALTORS®’ Chief Economist Lawrence Yun, Zillow Chief Economist Stan Humphries, and National Association of Home Builders Chief Economist David Crowe shared their views on the direction of the housing market during the forum.
“Last year was the worst year on record for [new] house sales, for 60 years of housing-sale info,” Crowe said.
But things are picking up, the economists note, despite several challenges still threatening that recovery. Yun says that appraisal issues are holding back up to 20 percent of home sales and that lenders’ tightened mortgage underwriting standards are likely holding back another 15 to 20 percent of potential home deals.
Here are some of the economists’ forecasts:
1. New-home market: The NAHB predicts a 19 percent increase in single-family housing starts this year over last (from 434,000 last year to a projected 516,000 this year).
2. Single-family rental market: This could be the next housing market bubble, Humphries warns. He expects this sector to cool as rental rates continue to increase and as home ownership looks more attractive to the public again.
3. Distressed home sales: The percentage of distressed homes sales is projected to drop by 25 percent in 2012 and 15 percent in 2013, Yun says.
4. Home price appreciation: Yun says it’s possible some markets may see a 10 percent rise in home-price appreciation next year due to an increase in demand, or a 60 to 70 percent increase in housing starts. Yun argues it won’t be both, however, but rather one or the other. He notes it greatly depends on whether lawmakers reach an agreement once again on the looming debt-ceiling deadline.
5. Home owners’ negative equity: About a third of home owners are underwater, owing more on their mortgage than their home is currently worth. As such, the housing recovery will likely be “stair stepped,” Humphries says. He says home owners with negative equity will gradually begin to list their homes as they see prices inch up, but when they do, that may temporarily swell the housing supply and cause a brief pause to the recovery.
If you are thinking of buying or selling at this time, talk to a real estate professional who can give you the answers you need.
As always, if I can help with any of your real estate needs text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.
RolandSource: REALTOR Magazine
Home Sales Up Dramatically in Area
Home sales in Spring Hill, Tennessee and Thompson’s Station, Tennessee saw a dramatic increase in sales for the month of May over last year.
Spring Hill saw an increase of 86% in home sales while Thompson’s Stations saw a 42% increase. In Spring Hill the media closing price for May, 2012 was $173,550 – up from $171,250 in May, 2011.
The home prices in Thompson’s Station increased from $209,900 in May, 2011 to $251,066 in May, 2012.
There has been a significant increase in home sales throughout much of the nation, but certainly not like we are seeing in the Spring Hill and Thompson’s Station market.
If you are thinking of buying or selling, talk to a real estate professional who can give you the facts you need.
As always, if I can help with any of your real estate needs, please don’t hesitate to text or phone me at 615 417-8182; or email me at RolandLow1@gmail.com.