019. with caution, americans still want a house

In this episode, I discussed a news article recently released by cnnmoney.com, titled “With caution, Americans still want a house“. you can read the full article at cnnmoney.com.
Hello and welcome to the Reside Daily Bite; I’m your host, David Doucette and today I want to talk about a news article that CNNMoney.com just released on Wednesday titled,” With Caution, Americans Still Want a House“. And the article starts by saying, “Nearly two-thirds of Americans would still prefer to own a home…A nationwide survey conducted by mortgage lender Fannie Mae found 65% of the homeowners and renters believe there is still value in owning a home.”

“Consumers are still committed to owning a home, but are showing increased cautiousness,” said Doug Duncan, chief economist at Fannie Mae. He goes on to say there has been “rebalancing” of consumer attitudes towards homeownership and Americans are adopting a more realistic approach and are now less willing to take risks. And I think this is a really important point and something to take note of -the mindset of us, Americans, in the idea that homeownership is still a good thing. It’s a very important concept, very important mindset and this is very important to help us get through this economic recovery time.

The survey showed that home buyers are growing more concerned with longer- term priorities, as opposed to the house “flipping” that’s going on in recent years. And this is important because, I think, when we look back on this period 10 to 15 years down the road, this will be the period when our priorities shifted as Americans and what is important to us has shifted. All of a sudden, it’s not going to be important to have the big McMansion; it will be more important to have a roof over our head, not only that meets our needs but also save money -save money for retirement, save money for the kids’ college funds, spend time for the family. I think that we’re going to come to realize that if we don’t already.

And it further said, “Over 40% said personal safety was their main consideration when buying a home, while a third indicated that the quality of local schools was the dominant factor.” Duncan continues, “This survey was done to get a level set about what the public is thinking about housing after the huge disruption. We wanted to understand the current and expected behavior of borrowers, and how to help people who have had difficulties.”

So, Fannie Mae had the survey conducted so they can essentially figure out what’s going on in the marketplace, in the mindset of homeowners and renters, the mindset of Americans about their attitudes towards owning homes and so they can strategize how best to address it.

“The survey showed that 60% believe buying a home today is harder than it was for their parents…Still, about two-thirds of respondents believe now is a good time to buy a house, and nearly one in three said now is a very good time to buy a house. This is nearly as many who said it was a good time to buy in 2003, well before home prices peaked.”

“A full 70% said they believe buying a home continues to be one of the safest investments available.” Again, that mindset, that shift…very important concept to note and I’m glad to see that number as high as it is. The article does say it’s down from 83% in 2003 but given everything we’ve been through over the last few years, I think 70% is a very positive number for us right now.

“Nearly three-quarters anticipate housing prices will go up or stay the same over the next year.” And finally -this is an interesting point, “A majority of respondents said it is unacceptable for a homeowner to stop making payments on their mortgage when the value of the property falls below the balance of the loan, a condition known as being “underwater.”

We talked about being underwater a few episodes ago on the Reside Daily Bite but it’s very interesting to see that and I think that’s a very interesting mindset as well. So for me, if I read between the lines of this article, it’s about mindset, it’s about our attitude and I think it is changing for the better. I’m seeing optimism in this article and it is exactly what we need to see. It’s going to take time but I think we are on the right path with this.

Let me know what you think, call our voicemail listener line, 1-800-476-5579 or you can email feedback@residerealestate.com

My name is David Doucette, thank you for watching the Reside Daily Bite.

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