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The New Housing Opportunities & Market Experience Survey

Michael Burke , , , , , , , , , , , , , , , , ,

An Overview: The New Housing Opportunities and Market Experience (HOME) Survey

New Housing Opportunities and Market Experience Survey

With the continued momentum of the real estate industry throughout the country, as well as locally, industry experts are taking the time to now put measurement processes in place to regularly gauge consumer sentiment about the housing market.  One such measurement process has just been newly released from the National Association of REALTORS® (NAR). Their newest survey report, Housing Opportunities and Market Experience (HOME), was just released in December 2015 and will be regularly released on a quarterly basis in 2016 and going forward.

The new HOME report covers core topics which will be tracked on a monthly basis, such as views on housing as a good financial investment, whether home ownership is part of the American Dream, if now is a good time to buy or sell a home, and the perception of home price changes.  Data will be reported not only on ownership status, but by age, income, and type of geographic location. Each quarter, new questions will be added to the survey reflecting timely topics in an ever-changing residential real estate marketplace.  The 2016 release dates are March 15, June 15, September 14 and December 14.

In review of the December 2015 release, 88 percent of American households believe owning a home is a good financial investment.  When asked if they believe this strongly or moderately, 76 percent among those who believe it is a good decision believe it strongly. Other highlights include:

  • Older households more frequently view home ownership as a good financial decision.
  • 89 percent of Caucasian households, 88 percent of African-American households, 84 percent of Asian households, and 82 percent of Hispanic/Latino households believe ownership is a good financial decision.
  • Among those with at least some college education, 89 percent believe buying a home is a good financial decision compared to 85 percent of those with no college education.
The New Housing Opportunities and Market Experience Survey

Is home ownership still part of the American Dream?

87 percent of U.S. households still believe home ownership is part of their American Dream.  Of those, 72 percent believe it strongly and 15 percent moderately.

  • Believing home ownership is part of their American Dream is highest among those who are 65 and among those with at least some college education (87 percent).
  • While 44 percent of households surveyed believe the economy is in a recession, the desirability of home ownership remains strong.
  • 87 percent of American households who believe the economy is in a recession also believe owning a home is part of their American Dream, compared to 88 percent who do not believe the economy is currently in a recession.

 

What about renters?

 

83 percent of current renters want to own a home in the future.

  • Renters age 34 and younger most frequently say they aspire to be homeowners in the future (94 percent).
  • 87 percent of Asian Americans households, 86 percent of African-American households, 86 percent of Hispanic households, and 84 percent of White/Caucasian households who currently rent do want to be homeowners in the future.
  • 77 percent of renters believe home ownership is part of their American Dream.

 

Unfortunately, the biggest roadblock to owning a home for renters is affordability. 53 percent of renters cannot afford to buy. On a local level, experts predict the increase of rent in Southwest Florida is imminent in 2016. This may level the playing field, essentially making it a better decision for renters to buy.  Another big concern for renters is the mortgage process. 31 percent of renters believe it would be very difficult and 34 percent believe it would be at least somewhat difficult to obtain mortgage.

 

Is now a good time to buy?

 

According to the survey, the majority still believe it is a good time to purchase a home. Owners are more likely than renters to believe now is a good time to buying a home, over the data collection period from March to December 2015. 82 percent of owners believe now is a good time to buy a home compared to 68 percent of renters. Among owners who thought it was a good time to buy a home, 64 percent held this viewpoint strongly. Renters held a more moderate viewpoint.

 

What is the outlook for home prices?

 

50 percent of survey respondents believe home prices in their communities have gone up during the past 12 months. 11 percent believe home prices have gone down and 39 percent believe they have stayed the same.

 

  • About 56 percent of American households who believe the U.S. economy is improving and is not in a recession also believe home prices have increased in their local community.
  • 42 percent of respondents believe home prices in their communities will increase during the next 6 months; 9 percent believe they will go down, and 49 percent believe they will stay the same.

 

Looking ahead to the next six months, individuals who do not believe the economy is in a recession and is improving are also more optimistic about home prices.  Among those who believe the economy is not in a recession, 47 percent believe home prices will increase compared to 37 percent of those who believe the economy is in a recession. Similarly, 50 percent of respondents who believe the economy is improving believe home prices will increase compared to 34 percent of those who believe the economy is not improving.

 

Survey Methodology

On behalf of NAR, the survey was conducted by an established survey research firm, TechnoMetrica Market Intelligence (technometrica.com). Each month, from March through December 2015, a sample of American households was surveyed via random-digit dial, including cell phones and land lines. The data compiled for this report was based on 9,034 completed telephone interviews. For monthly results, the margin of error for the survey is +/-3.3 percentage points at the 95% confidence level.  This entire survey report, and others published by NAR, can be found at realtor.org/research-and-statistics/research-reports.

 

This new survey report will be an essential tool to gauge the perception of the consumer versus the reality of the real estate market. As mortgage rules continue to tighten up to protect lenders, as well as consumers, the shift in ease of purchase concerns is apparent among those surveyed. Despite those concerns, many still believe home ownership is valued as a solid investment and renters will strive to overcome financial and/or lending challenges to obtain home ownership.

 

If you are unsure about your particular purchasing or selling situation, or whether or not you would qualify for a mortgage, contact an experienced real estate agent who has resources and is knowledgeable about the Southwest Florida market.  He or she will be able to help you assess your situation and point you in the right direction, setting you on the path to achieving your real estate goals for 2016.

Michael Burke, P.A.