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

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.

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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

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

Stunning Views from this Point Loma Home!

Stunning Views from this Point Loma Home for Sale!

Set atop a quiet street with stunning sit down panoramic views spanning the downtown skyline to the tip of Pt Loma, this spacious private home is an incredible opportunity for either turn-key living or a total transformation! The updated gourmet kitchen is ideally positioned at the heart of the living space, adjoining a breakfast area, den, & opening up to the outdoor entertaining space. Spacious bedrooms, custom upgrades, quality built-ins, plus outstanding natural light throughout.

Homes for Sale in Point Loma

Homes for Sale in Point Loma

Homes for Sale in Point Loma

Homes for Sale in Point Loma

Views spanning from the Downtown Skyline to the tip of Point Loma

Point Loma Homes for Sale

Homes for Sale in Point Loma

Priced at $1,595,000 – This Point Loma Home for Sale features 4 bedrooms, 3 baths, and nearly 2,560 sqft of living space.  Located at  3126 Russell Street, San Diego (Point Loma) CA 92106

 

Contact your Point Loma Realtor, Glen Henderson today to set up a time to tour this amazing home!

If you are searching for Homes for Sale in Point Loma, make sure to visit our site www.greatersandiegoareahomes.com or www.MyPointLoma.com

Stunning Home for Sale in Steel Canyon Estates

Stunning Home for Sale in Steel Canyon Estates

13398 Devon Drive, Jamul CA 91935

Stunning Home for Sale in Steele Canyon Estates! 13398 Devon Drive Jamul, CA 91935. If you have been searching for a home for sale on Steele Canyon Golf Course, you do not want to miss this home! http://www.greatersandiegoareahomes.com/listing/detail/65758180/CA/Jamul/13398_Devon_Dr

Pristine property within the exceptional Steele Canyon Estates community best known for their 27-hole championship golf course. The property is introduced with an expansive driveway leading to a 3 car garage. Behind the custom-made front door is a gorgeous entryway with a luxe spiral staircase, and ample natural light. Enjoy entertaining from a gourmet kitchen open to a dining area, and a grand living space. There’s plenty of room for a large gathering with a separate formal room with a fireplace and custom-designed bar area with built-in shelving. The first floor includes a master suite with an office nook and lovely master bathroom with a jetted bathtub and walk-in closet. A large theater loft is situated on the second floor with double doors opening to an expansive deck perched above Vineyard hole number 9 and Canyon hole number 1. A perfect place to celebrate 4th of July fireworks and daily sunsets. The backyard offers a below ground jacuzzi spa with a relaxing waterfall and sweeping golf course and mountain views. With several upgrades throughout and upscale amenities steps away, this property makes for the perfect home.

Search all San Diego Homes for Sale at http://www.greatersandiegoareahomes.com