Majority of Americans believe in home ownership and are positive about the market

The majority of people in the United States believe that buying a home is a good financial decision, that now is a good time to buy and that they could sell their home for at least its initial purchase price.

The survey from the National Association of Realtors which measures consumers’ attitudes and concerns about housing issues in the nation’s 50 largest metropolitan statistical areas, found that more than eight in 10 Americans are positive about the housing market.

Some 68% believe that now is a good time to buy a home, 71% that they could sell their house for what they paid for it, a jump of 16% compared to 2013, the data shows.

When asked for reasons about why home ownership matters to them, respondents’ answers have not changed significantly from past years. Building equity, wanting a stable and safe environment, and having the freedom to choose their neighbourhood remain the top three reasons to own a home.

‘Home ownership is part of the American Dream, and this survey proves that dream is alive and thriving in our communities,’ said NAR president Chris Polychron.

The research also found that the number of renters who are now thinking about purchasing a home has increased since the last survey in 2013, up from 36% to 39and 61% said that owning a home is a priority for their future.

According to the survey 80% of respondents believe that pre-purchase counselling programmes and classes are very or somewhat important. Indeed, 45% of home owners who said they did not take a counselling programme reported they would have taken part in one had it been easily available to them.

Attitudes about the housing market have improved in recent years and 49% of respondents indicated that they feel activity in the housing market has increased in the past year, compared to 44% in 2013 and 12% in 2011.

The study shows that 89% expect home sales in their area to either increase or remain the same. Concern about foreclosures has also declined, with only 15% of respondents indicating that foreclosure is a major concern.

In addition to improved attitudes about the housing market, survey participants also showed an improved outlook regarding the economy. Only 36% think that job layoffs and unemployment are a big problem, a substantial drop from 45% in 2013.

Perceived obstacles to home ownership have remained mostly unchanged compared to recent years and 78% of respondents pointed to college debt and student loans as the main obstacle to making a home purchase affordable.

On top of this 76% said they have a full time job but still did not make enough money to purchase a home while 74% believe they do not have enough money for a down payment and closing costs.

As the market has improved, concern about the cost of housing has increased. Two thirds of survey participants said that home prices are more expensive than they were a year ago. There is additional concern over the lack of available housing and 41% said the lack of affordable homes is either a very big or fairly big problem in their area, an increase of 9% from 2013.

For adults under the age of 35, the burden of student debt is their chief concern with 86% of respondents naming college debt as an obstacle to home ownership. Over half reported that their housing costs are a financial strain on their budget, 65% are concerned about high rental prices, and 60% are concerned about high home prices.

However, millennials tend to have a more upbeat and positive view about the future of the nation than older Americans, with 42% saying that the country is headed in the right direction compared to only 20% among those aged 50 and older.

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Source: Property News Spain