BABY BOOMERS GAINING OPTIMISM IN HOUSING

| Patrick Carmichael

Baby boomers have typically held the most pessimistic view on housing among all age groups, but their opinions are changing. Sixty percent of baby boomers now view the housing market favorably, a 6 percentage point increase from the spring, according to a Berkshire Hathaway HomeServices’ Homeowner Sentiment Survey. Seventy-two percent of that group say low […]

Baby boomers have typically held the most pessimistic view on housing among all age groups, but their opinions are changing. Sixty percent of baby boomers now view the housing market favorably, a 6 percentage point increase from the spring, according to a Berkshire Hathaway HomeServices’ Homeowner Sentiment Survey. Seventy-two percent of that group say low interest rates are the primary reason behind their increased optimism.

Among all home owners, 66 percent view the housing market favorably, a 5 percentage point jump from the spring and the highest level in more than a year.

Millennials remain the most optimistic generation when it comes to the housing market. Seventy-six percent of those ages 18 to 34 say they view housing favorably, up 17 percentage points from November 2015. Eighty-five percent say that owning a home is a crucial part of the American Dream.

Living With Parents Edges Out Other Living Arrangements for 18- to 34-Year-Olds

| Patrick Carmichael

Broad demographic shifts in marital status, educational attainment and employment have transformed the way young adults in the U.S. are living, and a new Pew Research Center analysis of census data highlights the implications of these changes for the most basic element of their lives – where they call home. In 2014, for the first […]

Broad demographic shifts in marital status, educational attainment and employment have transformed the way young adults in the U.S. are living, and a new Pew Research Center analysis of census data highlights the implications of these changes for the most basic element of their lives – where they call home. In 2014, for the first time in more than 130 years, adults ages 18 to 34 were slightly more likely to be living in their parents’ home than they were to be living with a spouse or partner in their own household.

This turn of events is fueled primarily by the dramatic drop in the share of young Americans who are choosing to settle down romantically before age 35. Dating back to 1880, the most common living arrangement among young adults has been living with a romantic partner, whether a spouse or a significant other. This type of arrangement peaked around 1960, when 62 percent of the nation’s 18- to 34-year-olds were living with a spouse or partner in their own household, and only one-in-five were living with their parents.

By 2014, 31.6 percent of young adults were living with a spouse or partner in their own household, below the share living in the home of their parent(s) (32.1 percent). Some 14 percent of young adults were heading up a household in which they lived alone, were a single parent or lived with one or more roommates. The remaining 22 percent lived in the home of another family member (such as a grandparent, in-law or sibling), a non-relative, or in group quarters (college dormitories fall into this category).

Homeownership Rate Continues to Decline

| Patrick Carmichael

National vacancy rates in first quarter 2016 stood at 7 percent for rental housing and 1.7 percent for homeowner housing, the Dept. of Commerce’s Census Bureau announced last week. The homeowner vacancy rate was 0.2 percentage points lower than the rate in first quarter 2015 and 0.2 percentage points lower than the rate in fourth […]

National vacancy rates in first quarter 2016 stood at 7 percent for rental housing and 1.7 percent for homeowner housing, the Dept. of Commerce’s Census Bureau announced last week. The homeowner vacancy rate was 0.2 percentage points lower than the rate in first quarter 2015 and 0.2 percentage points lower than the rate in fourth quarter 2015.

The homeownership rate of 63.5 percent was 0.2 percentage points lower than the first quarter rate of 63.7 percent and 0.3 percentage points lower than the fourth quarter 2015 rate of 63.8 percent.

HOME PURCHASE SENTIMENT INDEX MOVES UP IN 2015

| Patrick Carmichael

Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased 2.4 points to 83.2 in December, capping off its strongest year thus far, as Americans’ household income prospects bounced back to levels of three months ago. Coupled with an improved financial outlook, more consumers said they believe now is a good time to sell a home – […]

Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased 2.4 points to 83.2 in December, capping off its strongest year thus far, as Americans’ household income prospects bounced back to levels of three months ago. Coupled with an improved financial outlook, more consumers said they believe now is a good time to sell a home – climbing 4 percentage points on net – although the share who believe now is a good time to buy remained flat in December.

Highlights from the Index include:
• The net share of respondents who say that it is a good time to buy a house remained flat at 35 percent.
• The net percentage of respondents who say it is a good time to sell a house rose after falling for two months in a row – rising 4 percentage points to 8 percent in December.
• The net share of respondents who say that home prices will go up rose 2 percentage points to 40 percent.
• The net share of those who say mortgage interest rates will go down continued to decrease, dropping 4 percentage points to negative 52 percent.

C.A.R. Releases 2016 California Housing Market Forecast

| Patrick Carmichael

California’s housing market will continue to improve into 2016, but a shortage of homes on the market and a crimp in housing affordability also will persist, according to C.A.R.’s “2016 California Housing Market Forecast,” released late last week at CALIFORNIA REALTOR® EXPO in San Jose. The C.A.R. forecast sees an increase in existing home sales […]

California’s housing market will continue to improve into 2016, but a shortage of homes on the market and a crimp in housing affordability also will persist, according to C.A.R.’s “2016 California Housing Market Forecast,” released late last week at CALIFORNIA REALTOR® EXPO in San Jose.

The C.A.R. forecast sees an increase in existing home sales of 6.3 percent next year to reach 433,000 units, up from the projected 2015 sales figure of 407,500 homes sold. Sales in 2015 also will be up 6.3 percent from the 383,300 existing, single-family homes sold in 2014.

The average for 30-year, fixed mortgage interest rates is expected to rise only slightly to 4.5 percent but will still remain at historically low levels.

The California median home price is forecast to increase 3.2 percent to $491,300 in 2016, following a projected 6.5 percent increase in 2015 to $476,300. This is the slowest rate of price appreciation in five years.