Homes are a Better Investment than Retirement Savings

Americans want to buy homes and they want to buy them as an investment option. According to a study on homebuyers by NerdWallet, a personal finance website, 75 percent Americans say that buying a home was a priority for them. NerdWallet analyzed data of more than 2,000 adults surveyed, the company’s mortgage calculator, data from the Consumer Financial Protection Bureau (CFPB), and other sources to develop the study on current home buying sentiments, concerns, and outlook.

The study found that most Americans considered buying a home as a good investment with 64 percent of the people surveyed citing this as a reason to buy a home. And it’s not only the older generation that feels this way. Around 56 percent millennials felt that they would rather own a home that appreciated in value than have more money in retirement savings, reflecting the sentiment of 52 percent of the overall people surveyed.

In fact, according to the survey, 82 percent millennials said that buying a home was a priority compared with 75 percent of generation X and 69 percent of baby boomers. Millennials also aspired to buy more homes, on average throughout their lifetime and were most likely to say that they would like to buy a home to rent out for extra income.

Source: dsnews.com/daily-dose/02-01-2018

Home Owners Get More Realistic on Prices

Home owners’ perceptions of the value of their homes are starting to get closer in line to the opinions of appraisers.

The latest Quicken Loans Home Price Perceptions Index shows that the average appraisal was 1.15 percent lower than home owners’ expectations. In September, appraised values were 1.26 percent lower than home owner expectations — so the gap is narrowing between the two. This is the fourth consecutive month the index has moved closer in line between home owner and appraiser estimates.

View charts of the breakdown across the U.S. of home value expectations between appraisers versus home owners at: Quicken Loans

4 of 5 Americans Rate Housing a Good Investment

The majority of Americans say that owning a home is a good investment, according to a new poll of more than 2,800 registered voters commissioned by the National Association of Home Builders.

The survey found that 72 percent of Americans say that they support the government providing tax incentives to encourage home ownership.

However, obstacles still remain in their path, as well as for others too. Among all those polled, 55 percent say that the biggest obstacle to buying a home is finding a home at a price that they can afford. Fifty percent said they were prevented from buying due to insufficient savings for a down payment, and 41 percent say they are struggling to get approved for a home loan.

Source: National Association of Home Builders

Buying a Home? 3% Down Payments Start Next Week

Freddie Mac will begin offering mortgages with down payments of only 3 percent — the first time they’ve been this low on the GSE’s loans in nearly five years — starting March 23. The move is expected to make more credit available to entry-level borrowers.

“By launching our 3 percent down payment mortgage now, at the start of the spring homebuying season, lenders will be ready to serve qualified working families who are ready to buy and keep the recovery going,” Dave Lowman, executive vice president for Freddie Mac’s single-family business, writes on its Executive Perspectives blog.

Besides 3 percent down payments, Freddie Mac’s Our Home Possible Advantage Program, which is aimed at supporting first-time buyers as well as low- and moderate-income borrowers, is allowing no minimum from borrowers in contributions. That means parents or relatives now can cover 100 percent of the down payment through gifts.

Source: “Advantage: Home Buyers,” Freddie Mac (March 9, 2015)

Survey: Mortgage process has become too confusing!

A new survey shows that Americans’ confusion over mortgage applications has become one of the most challenging aspects of buying a home today. 

Nearly one-third of respondents said that understanding the mortgage process was the most difficult step in buying a home, according to the survey conducted by MortgageMatch.com, a unit of Move Inc.  That was higher than the share of borrowers who said getting approved for the mortgage (23%) or negotiating the home purchase price (25%) was the most difficult step in buying a home. 

Read the full story http://blogs.wsj.com/developments/2011/02/08/survey-mortgage-process-has-become-too-confusing/ 

This confusion also relates to the Sacramento and Placerville, California regions. Other information about this and related articles are at: www.sierraproperties.com

 

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