Student Loan Debt: Ongoing Hurdle to Homeownership

The U.S. currently has a student debt load of over $1.4 trillion, which accounts for 10 percent of all outstanding debt and 35 percent of non-housing debt. The magnitude of the debt continues to grow in size and share of the overall debt in the economy. While this amount of debt has risen, the homeownership rate has fallen, and fallen more steeply among younger generations. To evaluate those trends, SALT® and the National Association of REALTORS® (NAR) teamed up to conduct a survey of student loan borrowers who are currently in repayment in a new report entitled “Student Loan Debt and Housing Report: When Debt Holds You Back.” Notably, the median student loan debt amount is $41,200.

NAR_2017_Loan

Among non-homeowners, 83 percent cite student loan debt as the factor delaying them from buying a home. This is most frequently the case due to the fact that the borrowers cannot save for a down payment because of their student debt. Seventy-four percent of those who are delayed don’t feel financially secure enough, and 52 percent can’t qualify for a mortgage due to debt-to-income ratios.

NAR_2017_Debt

Among homeowners, 28 percent say student debt has impacted their ability to sell an existing home and move to a different home. These homeowners face a variety of problems: 21 percent believe it is too expensive to move and upgrade to a new home; 4 percent have problems with their credit caused by student loan debt; and 3 percent are underwater on their home.

The delay in buying a home among homeowners is three years. For non-homeowners, that number rises to seven years. Thirty-two percent of non-homeowners expect to be delayed more than eight years. Those with higher amounts of student loan debt and those with lower incomes expect to be delayed longer from purchasing a home than those with higher incomes and lower amounts of debt.

Forty-two percent were delayed moving out of their family member’s home after college, regardless of whether they were buying a home. This delay has a financial impact on both parents and the student loan borrower. Twenty percent were delayed by at least two years in moving out of a family member’s home after college due to their student loans. While 20 percent are currently homeowners, 30 percent live with friends or family, and half (15 percent) do not pay rent. Twenty-eight percent rent with roommates and 16 percent rent solo.

NAR_2017_Student

Among survey respondents, most are employed. Eighty-four percent are employed full-time, 6 percent are employed part-time and seeking full-time employment, and 3 percent are not employed. Seventy-nine percent received their loans from a four-year college, 19 percent from a two-year college, 29 percent from graduate/post-graduate school, and 7 percent from a technical college.

According to NAR’s Profile of Home Buyers and Sellers, among recent homebuyers, 27 percent have student loan debt and the typical amount is $25,000. The share of those with student loan debt rises to 40 percent among first-time homebuyers. Even among successful homebuyers, this amount of debt is cited as a difficulty in their home-buying process.

To find the full report, go to www.realtor.org/reports/student-loan-debt-and-housing-report.

The post Student Loan Debt: Ongoing Hurdle to Homeownership appeared first on RISMedia.

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

Pending Home Sales Slip, Trampled by West

For the housing market, gaining ground is proving to be a struggle.

On an annual basis—and for the eighth month in a row—pending home sales slipped, according to the August National Association of REALTORS® (NAR) Pending Home Sales Index (PHSI). Activity backtracked 1.8 percent month-over-month and 2.3 percent year-over-year.

According to the Index, activity contracted in all of the regions in the U.S. In the Midwest, activity declined 0.5 percent from July, and 1.1 percent from the prior year; in the Northeast, activity decreased 1.3 percent from July, and 1.6 percent from the prior year; in the South, activity dipped 0.7 percent from July, but rose 1.3 percent from the prior year; and in the West, activity fell 5.8 percent from July, and 11.3 percent from the prior year.

NAR_Pending_Aug18

“Pending home sales continued a slow drip downward, with the fourth month-over-month decline in the past five months,” says Lawrence Yun, chief economist at NAR. “Contract signings also fell backward again last month, as declines in the West negatively impacted overall activity. The greatest decline occurred in the West region, where prices have shot up significantly, which clearly indicates that affordability is hindering buyers—and those affordability issues come from lack of inventory, particularly in moderate price points.”

The good news? Yun anticipates relief—but at what point is uncertain.

“With prices having risen so quickly, many consumers were deciding to wait to list their homes hoping to see additional price and equity gains; however, with indications that buyers are beginning to pull out, price gains are going to decelerate and potential sellers are considering that now is a good time to list and bring more properties to the market,” Yun says.

Additionally, while affordability is being constrained by increasing rates, advancements on the employment front could offset the pressure.

“We have two opposing factors affecting the market: the negative impact of rising mortgage rates and the positive impact of continued job creation,” says Yun. “This should lead to future homes sales staying fairly neutral. As long as there is job growth, rising mortgage rates will hinder some buyers—but job creation means second or third incomes being added to households, which gives consumers the financial confidence to go out and make a home purchase.”

For more information, please visit www.nar.realtor. The post Pending Home Sales Slip, Trampled by West appeared first on RISMedia.

 

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

How Does the Supply of Homes for Sale Impact Buyer Demand?

How Does the Supply of Homes for Sale Impact Buyer Demand? | Simplifying The Market

The price of any item is determined by the supply of that item, as well as the market’s demand for it. The National Association of REALTORS (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for their monthly REALTORS Confidence Index.

Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand).  It also helps to answer the question: “Should I buy now, or wait until next year?”

Buyer Demand

The map below was created after asking the question: “How would you rate buyer traffic in your area?”

How Does the Supply of Homes for Sale Impact Buyer Demand? | Simplifying The Market

The darker the blue, the stronger the demand for homes is in that area. The survey showed that in 38 out of 50 states buyer demand was slightly lower than this time last year but remains strong. Only six states had a ‘stable’ demand level.

Seller Supply 

The index also asked: “How would you rate seller traffic in your area?”

As you can see from the map below, 23 states reported ‘weak’ seller traffic, 22 states and Washington D.C. reported ‘stable’ seller traffic, and 5 states reported ‘strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the buyers who are out looking for homes.

How Does the Supply of Homes for Sale Impact Buyer Demand? | Simplifying The Market

Bottom Line

Looking at the maps above, it is not hard to see why prices are appreciating in many areas of the country. Until the supply of homes for sale starts to meet buyer demand, prices will continue to increase. If you are debating listing your home for sale, let’s get together so I can help you capitalize on the demand in the market now!

 

Brought to you by San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for over 16 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

Where Are Mortgage Interest Rates Headed In 2019?

Where Are Mortgage Interest Rates Headed In 2019? | Simplifying The Market

The interest rate you pay on your home mortgage has a direct impact on your monthly payment; the higher the rate, the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.

Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next year.

Where Are Mortgage Interest Rates Headed In 2019? | Simplifying The Market

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 6.2% from this time last year and are predicted to be 5.1% higher next year.

If both the predictions of home price and interest rate increases become a reality, families would wind up paying considerably more for their next homes.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth, so don’t wait until next year! Let’s get together to evaluate your ability to purchase your dream home now.

 

Brought to you by San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for over 16 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

Appraisers and Homeowners Sync Up on Value

Appraisers and homeowners are syncing up on value, with appraisals in April just 0.33 percent below what homeowners predicted, according to the Quicken Loans National Home Price Perception Index (HPPI). The Quicken Loans National Home Value Index (HVI) shows appraised values rose 6.47 percent year-over-year.

QL_HPPI_May

The findings indicate homeowners are less likely to get a rude awakening when going through mortgage process; it is the closest the national appraiser and owner opinions have been in more than three years.

“The appraisal is one of the most important, although sometimes least predictable, parts of the mortgage process,” says Bill Banfield, executive vice president of Capital Markets at Quicken Loans. “The Home Price Perception Index is a way to illustrate the differences of opinion, and these differences affect everything from the type of mortgage a borrower can get to the expectations a seller has about the proceeds available upon sale of their home.”

Homeowner opinions are also improving when viewed locally. Less than 20 percent of the areas measured have appraisal values lower than estimated. San Jose is leading the way, with the average appraisal 2.75 percent higher than expected, and Chicago is trailing all cities, with appraisals an average of 1.68 percent lower than estimated. Only five of the 27 metro areas observed in the HPPI reported appraisals lower than what owners estimated.

While they are more in line with what owners expected, home values are continuing their ascent over last year’s level. The HVI reported a healthy 6.47 percent year-over-year increase, despite near-stagnant monthly change, with a 0.05 percent dip in home values since March. The HVI was pulled into the negative by the Northeast—the only region showing a decrease in home value, at a 1.24 percent decline. The Northeast was still the lowest when reviewing annual changes; however, all regions were positive, ranging from the Northeast’s 2.22 percent growth to the 9.44 percent jump in the West.

“The skyrocketing home values in the West is a trend with no end in sight,” Banfield says. “Until home-building pace picks up, in combination with more existing homes being listed for sale, affordability will continue to wane. The other regions of the country are showing annual price gains as well, but at a more moderate pace. Time will tell if the slightly higher interest rates in 2018 start to slow demand, or if the inventory shortage ends up being a larger contributor to price changes.”

For more information, please visit QuickenLoans.com/Indexes.

The post Appraisers and Homeowners Sync Up on Value appeared first on RISMedia.

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

Entry Level Homes Becoming Even More Difficult to Find

There is all-but-dried up inventory on the market—and, for buyers at the entry level, any available homes are likely priced out of reach, according to the March Zillow® Real Estate Market Report.

“This year’s home-shopping season is shaping up to be even crazier than last, and, sadly, the group that will have the hardest time is first-time and lower-income homebuyers,” says Dr. Svenja Gudell, chief economist at Zillow. “These buyers will be competing for the few entry-level homes on the market, which are also the ones appreciating the fastest because of extremely high demand.”

Inventory has dwindled down 8.6 percent in the past year, the report shows, and, of the available listings, 51.4 percent are priced in the top tier. By comparison, entry homes make up 21.9 percent of the supply. According to the Zillow Home Value Index (ZHVI), which gauges the median value, prices are up 8 percent year-over-year.

2018 Housing Trends

25 Largest Metros

“One way to take the edge off would be an increase in inventory, but that is easier said than done,” Gudell says. “There are some signals a shift may be coming—construction activity is at its highest point in a decade—but buyers shouldn’t hold their breath.”

According to Gudell, in this feverish market, buyers need a professional at their side.

“Getting preapproved for a mortgage and finding an agent you trust can go a long way in helping buyers act quickly once the right home does become available in this otherwise tight and stressful housing landscape,” says Gudell.

 

The post Drought Intensifies for Starter Supply appeared first on RISMedia.

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

Pending Home Sales Strained – March 2018

Will They Break Through?

March’s pending home sales strained, up a paltry 0.4 percent in the National Association of REALTORS® (NAR) Pending Home Sales Index (PHSI). Two of the major regions in the U.S. experienced higher sales, with the Midwest gaining 2.4 percent and the South gaining 2.5 percent, but in the Northeast, sales slipped 5.6 percent, and in the West, slumped 1.1 percent.

“Healthy economic conditions are creating considerable demand for purchasing a home, but not all buyers are able to sign contracts because of the lack of choices in inventory,” says Lawrence Yun, chief economist at NAR. “Steady price growth and the swift pace of listings coming off the market are proof that more supply is needed to fully satisfy demand. What continues to hold back sales is the fact that prospective buyers are increasingly having difficulty finding an affordable home to buy.”

According to Yun, any considerable improvement rests on supply.

“Much of the country is enjoying a thriving job market, but buying a home is becoming more expensive,” Yun says. “That is why it is an absolute necessity for there to be a large increase in new and existing homes available for sale in coming months to moderate home price growth. Otherwise, sales will remain stuck in this holding pattern and a growing share of would-be buyers—especially first-time buyers—will be left on the sidelines.”

For more information, please visit www.nar.realtor.

 

The post Pending Home Sales Strained appeared first on RISMedia.

Brought you San Diego Real Estate Agent and Real Estate Broker, Glen Henderson.  Glen has been a San Diego Realtor for 15 years and has been involved in over 1,000 home sales throughout San Diego County.  Contact him today with any questions at 619-500-3222 or visit Premier Homes at www.MyPremierHomes.com

If you would like to Search Houses for Sale in San Diego, visit www.GreaterSanDiegoAreaHomes.com

Rancho Del Rey Home for Sale – 1019 Acero Street, Chula Vista

Stunning Views from this Rancho Del Rey Home for Sale!

1019 Acero Street, Chula Vista CA 91910

Priced on a range of $919,900 to $969,900. This one of a kind home is located on a nearly quarter-acre premium lot in the prestigious “Aragon” development of Rancho Del Rey. You will enjoy panoramic views from Point Loma/Downtown to the mountains. The spacious floor plan features ample natural light, an open family room that opens to the kitchen and a full bedroom/bath on the lower level. Upstairs you will find the large master retreat, complete with a private balcony and large sitting room that has a full closet. (Easily could easily be a 6th bedroom.) The large yard is nicely landscaped with lush lawns and an incredible swimming pool and spa in back. The home features beautiful stone flooring on the lower level, an upgraded kitchen with a large pantry and more. The home also features a large three car attached garage and central A/C. There is no HOA and $147 / Month in Mello-Roos.

1019 acero street rancho del rey homes for sale1019 acero street rancho del rey homes for sale 1019 acero street rancho del rey homes for sale 1019 acero street rancho del rey homes for sale 1019 acero street rancho del rey homes for sale 1019 acero street rancho del rey homes for sale 1019 acero street rancho del rey homes for sale 1019 acero street rancho del rey homes for sale

Listing by San Diego Realtor Glen Henderson

Search All San Diego Homes For Sale at GreaterSanDiegoAreaHomes.com

About Rancho Del Rey & Chula Vista:

In 1542, a fleet of three small ships sailed into San Diego Harbor commanded by Juan Rodriquez Cabrillo. These explorations led the Spanish to claim the land. In 1795, Chula Vista became a part of a Spanish land grant known as Rancho del Rey or “The King’s Ranch.” When Mexico formed its own government in 1831, Rancho del Rey became known as Rancho del la Nacion or National Ranch. The ranch encompassed the area now known as National City, Chula Vista, Bonita, Sunnyside and the Sweetwater Valley. Rancho del la Nacion was used by the Spanish as grazing land for their cattle and horses until 1845 when it was granted to John Forster, the son-in-law of Mexican governor Pio Pico. The United States claimed California following the Mexican-American war in 1847 and admitted it as a state in 1850. From then till now, Rancho Del Rey has maintained a homey, comfortable lifestyle – merging many of the pleasant things in Southern California with many of the exciting and uniquely Californian attractions and places to visit. Residents of all ages enjoy both extremes in Rancho Del Ray, California’s one and only “King’s Ranch.”

Because of its many special qualities and enduring charms, homes in Rancho Del Rey sell quickly. Charming first-time buyer and senior homes, executive and luxury estates, recreational properties for active lives and special view properties of all styles and sizes can be found within or near this community.

Rancho Del Rey real estate includes a wide variety of homes for sale, condos for sale, water access properties, active adult communities, hobby farms and executive properties.

Premier Homes TeamSan Diego Real Estate Agents, Cal BRE # 01384181

Single Story Tierrasanta House for Sale on a Cul-de-Sac

Move in Ready Single Story Tierrasanta House for Sale

tierrasanta houses for sale 4980 paguera court san diego

4980 Paguera Court, San Diego CA 92124

Do not miss this stunning single level home in the serene Villa Majorca neighborhood of Tierrasanta. Located near the end of the cul-de-sac and overlooking the hillside, this well kept Tierrasanta home gives you a quiet setting and no neighbors behind you. The spacious floor plan features a large living room and optional 4th bedroom. The home has been updated with new dual pane windows, updated 2nd bath, updated kitchen with granite counters and more! Conveniently located close to shopping, schools, hiking, and the library. If you have been searching for houses for sale in Tierrasanta, you do not want to miss this home!

Listing by San Diego Realtor Glen Henderson

Search All San Diego Homes For Sale at GreaterSanDiegoAreaHomes.com 

Tierrasanta Homes for Sale 4980 paguera court san diego

Tierrasanta Homes for Sale 4980 paguera court san diego

Tierrasanta Homes for Sale

Tierrasanta Homes for Sale

The History of Tierrasanta:

Tierrasanta is situated like an island, not directly bordered by any other community. It is bounded on the north by the Hwy 52 Freeway and the sprawling southern fields of MCAS Miramar; on the east by the 5,800-acre Mission Trails Regional Park, which has numerous hiking and mountain biking trails; on the west by bluffs bordering the Interstate 15 corridor, and on the south by steep canyons overlooking the San Diego River and Mission Valley. Community activities focus on the Tierrasanta Recreation Center, which includes lighted sports fields, a large swimming pool, tennis courts, a gymnasium, and meeting rooms. Numerous green belts with walking paths run through the canyons of Tierrasanta. The community has tree-lined streets and a secluded “small town” atmosphere, though it is centrally located with a 20 minute drive to downtown San Diego.

Premier Homes Team, San Diego Real Estate Agents, Cal BRE lic # 01384181

Stunning Cardiff Home for Sale – 2027 Glasgow Ave, Cardiff

Stunning Cardiff Home for Sale with Views!

2027 Glasgow Ave, Cardiff, CA 92007

Offered between $1,995,000-$2,285,000. This stunning home is located in Cardiff by the Sea, west of I-5 and it has ocean views! Pass through the dramatic mosaic entrance into a private courtyard; continue through a wall of French Doors to this masterfully designed custom home.  If you have been searching for a home for sale in Cardiff, you do not want to miss your opportunity!

The formal dining room has a kiva fireplace and butler’s pantry. Take the nautical spiral staircase to the top deck with a kitchen and entertaining area to enjoy the panoramic view. Home surrounds a brick patio artistically landscaped featuring a spa and privacy. Quiet tranquil location.

search all homes for sale in cardiff by the sea, encinitas. Cardiff homes with an ocean view

Cardiff homes for sale

search all homes for sale in cardiff by the sea, encinitas. Cardiff homes with an ocean view

4 bedroom, 4 bath, 2 offices, 3 fireplaces in this 3,028 ESF home with multiple outdoor view living spaces. The living room boasts vaulted ceilings with open exposed beams that continue through the home. Natural light is abundant as you enter the chef’s kitchen and wood detailed dining room with a climate-controlled wine cellar. Eight foot French doors separate the formal dining room and the rear courtyard which is centrally located, a private oasis accessible from multiple rooms. This is the only known courtyard layout of its kind in Cardiff’s walking district. The first floor is accommodated by 3 bedrooms, a laundry room and a built-in office work space. The rear bedroom area could easily be divided to encompass a separate living quarter, with its own bed, bath, walk-in closet and kitchenette through a separate entrance. The second floor opens up to a study with ocean views. The media room offers surround sound and includes an ensuite and 8’ French doors leading to the wrap-around deck facing the West. The master bedroom exudes natural light streaming from both sides of the room and overlooks the private courtyard and spa.

Cardiff homes for sale

Stunning ocean views from this Cardiff home

The upper deck has unobstructed sweeping views of the Pacific Ocean. Perfect for entertaining and enjoyment, this rooftop terrace has a full outdoor kitchen, fireplace, dining table and lounging space. Play music through the sound system wired through the whole home, both inside and out, clear sound from every room. Concealed 46 panel solar system allows for Eco-friendly living without compromising design. Off street parking for 3 vehicles. Living in Cardiff is a lifestyle like no other, a relaxed community offering a small town feeling. Located in the walking district allows you to be steps away from amenities including Encinitas Community Park (also has a dog park), fine dining, cafes, shopping and prime beaches with some of San Diego’s best surf locations.

 

Contact Your San Diego Real Estate Agent, Glen Henderson for more information about this home or others. If you are searching for Homes for Sale in Cardiff, make sure to visit our site  www.greatersandiegoareahomes.com