RISMedia's Real Estate Magazine

MAR 2018

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/944619

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Page 32 of 118

28 March 2018 RISMedia's REAL ESTATE Homebuyers are hopeful, however. Demand is ever-increasing, and, of aspiring homeowners, the majority do want to own. In 2017, approxi- mately one-quarter (and as much as 32 percent) of aspiring homeowners identified their motivators for pur- chase as children, marriage and/ or retirement, the Profile reveals. A similar share (26 - 30 percent) indi- cated they would buy if their finances improved. Less motivating is a raise in rents, the Profile shows. Despite 51 per- cent of renters anticipating their rent will rise, 42 percent would not move. Twenty-five percent would find a less pricey rental. Just 15 percent would make the move to own. Affordability is the obstacle—and according to Lawrence Yun, chief economist at NAR, aspiring home- owners at the lower-end of the market have the worst of it. At the close of 2017, in fact, 56 percent of aspiring homeowners did not have the means to purchase, while the amount of aspiring homeowners who believed it is a good time to buy de- clined (down to 58 percent from 62 percent). "A tug-of-war continues to take place in many markets throughout the country, where consistently solid job creation is fueling demand, but the lack of supply is creating afford- ability constraints that are ultimately pulling aspiring buyers further away from owning," says Yun. "These ex- tremely frustrating conditions contin- ue to be most apparent at the lower end of the market, which is why the overall share of first-time buyers re- mains well below where it should be given the strength of the job market and economy. "Housing demand in 2018 will be fueled by more millennials finally de- ciding to marry and have kids and the expectations that solid job growth and the strengthening economy will push incomes higher," Yun says. "However, with prices and mortgage rates also expected to increase, af- fordability pressures will persist. That is why it is critical for much of the country to start seeing a signifi- cant hike in new and existing hous- ing supply. Otherwise, many would- be first-time buyers will be forced to continue renting and not reach their dream of being a homeowner." The Aspiring Home Buyers Pro- file is based on findings from NAR's 2017 Housing Opportunities and Market Experience (HOME) surveys. RE For more information, please visit www.nar.realtor. Suzanne De Vita is RISMedia's online news editor. Email her your real estate news ideas at sdevita@rismedia.com. Buyers Caught in Deadlock: NAR B uying a home is a mark of the American Dream—but even though the desire exists, realizing it is a struggle, according to the Aspiring Home Buyers Profile recently released by the National Association of REALTORS® (NAR). by Suzanne De Vita

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