Homes.com tells MHProNews that 65% of their site’s visitors are searching for rentals. So it’s no surprise that even with low lending rates, many home buyers are cautious.
Jed Kolko, chief economist of real estate website Trulia Inc. said: “Entry-level buyers might not yet surge back into the market. While wages and credit standards are turning in their favor, those buyers face a bigger obstacle in saving for a down payment on a home. Those down payments have gotten larger as home prices have increased in recent years, and saving up for them has gotten more challenging as rents have increased.”
The Commerce Department says the median home price is now at $305,000. Because of the rising cost of existing home and newly built homes John Johnson, David Weekley Homes’ chief executive said: “There are a bunch of people who are waiting until they feel more confident about the future.”
Realty Biz News told MHProNews that historically low interest rates, near 4 percent, and an improving labor market have helped to increase new-home sales. But sales were up only 1 percent in the first 10 months of this year compared with the same period in 2013.
Furthermore, October’s annual sales pace is only about half the average annual level of sales from 1996 through 2006.
With the economic highs and lows, instability of the housing market is reflected as experts predict one way or the other. Buyers play the waiting game too. There is a continued hope among optimists the market will level off. Realtor.com chief economist Jonathan Smoke said,
“that new-home sales will increase by 25% in 2015 from their current rate of roughly 440,000 for 2014. While heady, that 25% projection actually falls short of the 28% gain foreseen by the National Association of Home Builders and the stratospheric 41% gain predicted by the National Association of Realtors.”
Trulia on Wednesday released the results of a survey it conducted last month of 2,008 U.S. respondents. In regard to their outlook for 2015, the largest percentage of respondents–36%—said: “next year will be better than 2014 for selling a home.”
The hint by many experts have in common is a better economy will be needed for an improved housing market.
Closing points for manufactured housing professionals. Like a prior report that suggests that buyers want a new home vs. a pre-owned home, Trulia had similar findings. And the graphic suggests even current renters want their piece of the American dream, someday. These are factors MH Professionals could build on, at least for those firms and associations that act rather an play wait and see. ##
(Graphic Credit: Trulia)
