More people are confident in qualifying for a mortgage
Despite the ongoing challenge of low inventory, most people think that now is a good time to buy or sell a home.
The latest HOME (Housing Opportunities and Market Experience) survey from the National Association of Realtors shows that 75% of Americans think now is a good time to sell while 68% think it’s a good time to buy.
However, digging deeper things are not as positive with no movement in buyers’ sentiment in the second quarter of 2018 compared to the first; and the share of renters who think now is a good time to buy is down from 55% in Q1 to 49% in Q2.
“Improving supply conditions is critical to improving buyer optimism and helping to remove some of the barriers holding back potential first-time buyers," says NAR chief economist Lawrence Yun.
More people think they will qualify for a mortgage
More than half of those surveyed think the economy has improved and this has also led to a year-over-year rise in the survey’s Personal Financial Outlook Index, focusing on whether they think their personal finances will be better in 6 months (62.1 vs 57.2) although this is down from Q1 (63.8).
The share who believe it won’t be difficult to qualify for a mortgage is up from the previous quarter (46% vs 36%).
"This is most likely a reflection of the current positive outlook on the direction of the economy," said Yun. "Healthy job creation and faster wage growth mean that homeownership is viewed as a more attainable goal than it was a year ago."
What do people feel about their local market?
The share of people who told the NAR survey that home prices have increased in their neighborhoods in the past 12 months was 68% in Q2, up from 63% in the previous quarter.
More than half continue to believe that prices will continue to rise locally in the next 6 months.
Sixty-seven percent of those surveyed said that homeownership strengthens communities a great deal, and that number jumps to 76% for current homeowners and 77% for those 65 and older.
Seventy-three percent believe that it will be harder for future generations to purchase a home, compared to only 11% who think it will be easier.
