Which Home Security System?

Consumers show preferences for certain types of security options, according to Safehome.org, a home security survey. For example, the group of consumers who say they feel safe were two times more likely to have a front door security system, the survey found. Professionally monitored security systems help many consumers feel safe, but certain demographics felt more at ease with other features. For example, baby boomers prefer security cameras around the property, men surveyed felt most safe with guns, and renters and homeowners in rural areas felt safest with an entry keypad with a security code and alarm.

About a third of consumers surveyed with a home security system use a variety of accessories, including door sensors and security keypads. Thirty percent of those surveyed also chose all-in-one security systems, which usually consist of live streaming cameras, motion sensors, arming and disarming functionality, and sirens.

Source: “Security in the Home,” Safehome.org (2019)

“I Want to Buy a Home” Report

Many non-owners—those renting or living with someone else—are eager to buy a home. But their current financial situation is what is mostly holding them back.

The newly released “2019 Profile of Buyers and Sellers” report contained a new section this year, including a survey about non-owners and their views on home ownership. NAR released the report during the 2019 REALTORS® Conference & Expo in San Francisco this week.

But the main reason they aren’t buying yet is because they can’t afford to make the jump into ownership. “Making the largest financial purchase in one’s life relies on the financial strength to do so,” the report notes. Seventy-five percent of non-owners surveyed say they believe home ownership is part of the American dream. Eighty-one percent of non-owners say they want to own a home in the future.

Source: National Association of REALTORS®’

Re-Acceleration in Home Prices

Good news for sellers: Home prices are on the rise. But buyers should brace for higher prices.

Nearly all—93%—of the largest metros in the U.S. saw home prices rise in the third quarter over the past year. A shortage of homes for sale, combined with higher demand, continues to push home prices higher, according to the latest quarterly report from the National Association of REALTORS®, released Thursday.

While the majority of metros saw higher prices in the third quarter, a few markets did register lower prices, notably in areas long-known for high costs. Single-family median home prices moderated in the third quarter in markets such as San Jose-Sunnyvale-Santa Clara, Calif. (–4.6%); San Francisco-Oakland-Hayward, Calif. (–2.5%); and San Diego-Carlsbad, Calif. (–0.8%).

Gov. Probe Into Creating More ‘Affordable Housing’

President Donald Trump has signed an executive order to ease or, in some cases, eliminate rules that have been blamed for blocking greater construction of affordable housing. Home building is near its lowest level in 60 years, contributing to a nationwide housing shortage that has pushed home prices up and hurting affordability.

Trump announced that a newly created initiative called the White House Council on Eliminating Barriers to Affordable Housing Development will use federal programs to find ways to encourage local governments to allow for more building. The council, which will be chaired by Department of Housing and Urban Development Secretary Ben Carson, will also conduct a study to quantify the effect of regulations on the housing market and economy.

Source: “Trump Administration to Take on Local Housing Barriers,” The Wall Street Journal (June 25, 2019) [Log-in required.]

Flood Insurance Extension

The Financial Services Committee of the U.S. House of Representatives voted unanimously on Tuesday to approve a five-year extension to the National Flood Insurance Program, the nation’s largest flood insurer. The bill also includes a mandate to improve the country’s flood maps.

Federal law requires the purchase of flood insurance for a federally backed mortgage in special flood hazard areas designated by FEMA. Private flood insurance is also available in many high-risk areas, but the NFIP may be the only option for some.

The bill will now go before the full House for approval. The Senate must be then approve it to bring it to President Donald Trump.

Planning for Home Ownership?

When is the right time to purchase your first home? The answer differs across age groups, family pressures and life goals.

One in five parents say they expect their child to own a home by age 25, yet this doesn’t match up to reality. Younger adults tend to feel the most pressure to own a home, but they’re still waiting on their own time terms, according to a new survey from Porch.com, a home remodeling website. Porch.com surveyed nearly 1,000 individuals, ages of 18 to 81.

“Purchasing a home is one of the most complex and expensive decisions most of us make, so it’s easy to see how not choosing the right style, location, or size can invoke criticism from relatives,” the report notes. “Of the three generations, millennials felt the least amount of pressure from relatives when it came to housing choices, whereas both baby boomers and Gen Xers felt slightly more judged.”

Source: “Exploring Generational Differences in Life Goals,” Porch.com (June 4, 2019)

Homeowners’ Top Neighborhood Gripes

The wrong neighborhood can make for an unhappy homeowner.

A new survey from Porch.com, a home remodeling website, surveyed about 1,000 consumers to find the biggest neighborhood turnoffs. Noise, traffic, and crime were the chief concerns of buyers. Noise topped the list of neighborhood turnoffs, with 41% of respondents citing it as their top gripe, according to the survey. In fact, noise proved to be an even bigger deterrent than a high crime rate.

More details on illustrations at source: “Moving Matters,” Porch.com (May 2019)

Owning Is Easier Than Renting

Survey: A majority of homeowners recently surveyed say they believe owning a home isn’t as difficult as renting, according to a new survey from LendingTree, an online loan marketplace. Only 15% of homeowners believe renting is easier than owning a home, compared with 67% of more than 2,000 homeowners who said owning is easier.

The longer homeowners have been in their homes, the more likely they are to believe owning is easier, according to the study. For example, nearly 72% of homeowners who have spent seven to nine years in their home say owning is easier than renting.

Saving Enough for Remodeling?

Eighty-two percent of consumers believe the home they own is a financial asset, the study says. As such, they want to tackle home improvement project to increase the value of their home even more. More than half—52 percent—of consumers say they plan to take on a home improvement project in the next year. Kitchen and bathroom remodels lead in projects. (Read more: Design TV Shows Are Inspiring Optimistic Home Renovators)

But many consumers have failed to save enough. Sixty-four percent of consumers say their home improvement project will cost under $15,000. Bathroom remodels can cost anywhere from $19,000 upwards to $61,000; significant kitchen remodels can cost upwards to $125,000, according to the study from Discover Home Equity Loans.

Report: ‘Homeowners 8% Richer’ Over the Past Year!

The average homeowner has gained $9,700 in home equity between the fourth quarter of 2017 and the fourth quarter of 2018, the report showed. Western states saw the most significant gains.

“As home prices rise, significantly more people are choosing to remodel, repair or upgrade their existing homes,” said Frank Martell, president and CEO of CoreLogic. “The increase in home equity over the past several years provides homeowners with the means to finance home remodels and repairs. With rates still ultra-low by historical standards, home-equity loans provide a low-cost method to finance home-improvement spending. These expenditures are expected to rise 5 percent in 2019.”

Source: “Homeowner Equity Report: Fourth Quarter of 2018,” CoreLogic (3/7/2019)