News In Brief
- More than 100 forecasters said they expect the U.S. home values to end 2013 up an average of 6.7 percent year-over-year before slowing over the next five years. The survey of 108 economists, real estate experts and investment and market strategists was sponsored by Seattle-based Zillow, Inc. and is conducted quarterly by Pulsenomics LLC. While appreciation is expected to remain strong through the remainder of this year, the pace of home value growth is predicted to slow considerably through 2018. Panelists said they expect appreciation rates to slow to roughly 4.3 percent next year, on average, eventually falling to 3.4 percent by 2018. Based on current expectations for home value appreciation over the next five years, panelists predicted that overall U.S. home values could exceed their May 2007 peak by the first quarter of 2018.
- The latest research on homebuyers from the National Association of Realtors shows the effects of tight mortgage lending standards on the market. The association says that these conditions are keeping qualified buyers, especially singles and first-time buyers from home ownership. NAR's 2013 Profile of Home Buyers and Sellers is the latest release in a long-running series that dates back to 1981. Results are representative of owner-occupants and do not include investors or vacation homes. The overall market share of single buyers declined from 32 percent in 2010 to 25 percent in both 2012 and 2013. First-time home buyers slipped to a 38 percent market share in the past year from 39 percent in the 2012 study.
- A survey conducted by Fannie Mae finds that delinquent borrowers - those late on their mortgage payments and at risk of foreclosure - are still committed to the idea of home ownership, even if they are having some difficulties with it now. Particularly in the past year, and as home prices rise, delinquent borrowers have become more upbeat about housing, the survey showed. The survey found that the majority still believe in the financial and lifestyle benefits of home ownership. Delinquent borrowers were asked if renting or home ownership was better for building wealth. Seventy-four percent said owning was better for building wealth. Approximately 70 percent said home ownership was also better for their overall tax situation. Many delinquent borrowers say they've been unsuccessful at refinancing and lowering their monthly mortgage payments. The most common barriers cited are not qualifying and not trusting lending institutions, the survey found.