Hacked By GeNErAL
Most Renters Plan to Buy, But Fear Lending Standards
Ninety percent of renters say they expect to buy a home in the future, but the majority are fearful of their ability to qualify for a mortgage at today’s stringent underwriting standards, according to a new survey conducted by Fannie Mae. In fact, 42 percent of those who intend to buy a home one day say they don’t think they’ll be able to do so for at least five years.
"Younger renters who prefer to own are much more likely than their older counterparts to say that they are renting mainly to make themselves financially ready to own," according to the survey.
The majority of renters surveyed said that if they had trouble qualifying for a mortgage, they would take steps to improve their credit score or financial situation, or consider buying a less expensive home. Only a quarter of renters said that if they were denied a mortgage, they would stop pursuing a mortgage altogether.
The survey showed that renters believe home ownership is better than renting in terms of privacy, security, and for raising a family. Fifty-one percent of renters say that owning makes more sense than renting when comparing both the financial and lifestyle benefits, according to the survey.
"The strength of the economy, particularly job creation and real income growth, as well as the favorability of credit conditions should play significant roles in determining if and when many of these renters will see the fruit of their efforts to become home owners," says Sarah Shahdad, analyst of Economic & Strategic Research at Fannie Mae.
Source: “Renters pursue the American Dream of homeownership,” HousingWire (June 6, 2013
Higher Home Prices Cool Buying Frenzy
The recent rise in home prices has more investors concerned that it will be increasingly difficult to turn a profit from their rental investments. Nearly half of U.S. real estate investors say they expect to purchase fewer rental homes in the next year, according to a recent survey conducted by polling firm ORC International.
Just 10 months ago, the percentage of investors who said they intend to buy fewer homes stood at 30 percent—compared to 48 percent today. Only about 20 percent of the investors surveyed say they plan to buy more homes in the next year—a drop from the 39 percent who reported they intend to buy more homes last August.
More than half of the investors surveyed who own rental properties say they plan to hold them for at least five years or more, and 33 percent plan to hold them for 10 years or more.
“Higher prices are reducing returns on investment and investors are responding by cutting back on their purchasing plans until conditions sort out,” says Chris Clothier, a partner in MemphisInvest.com and Premier Property Management Group. “Fewer foreclosures, rising property values, and competition from hedge funds are making it tough to find good ideals on distressed sales. On the other hand, investors are planning to hold onto their rental properties for at least eight to 10 years and realize the benefits of rising rents and low vacancy rates. Cash flow is much more important than appreciation.”
Source: ORC International
The Beach Store Cafe
• 2200 North Nugent Road near the ferry dock. A charming, waterfront restaurant oriented around casual family dining. Open 11:00 AM – 9:00 PM Wednesday thru Friday, 9:00 AM – 9:00 PM on Saturday and Sunday. This is a great spot to sample local products, such as pastas, fresh oysters and salmon and organic vegetables. Takeout available. (360) 758-2233 www.beachstorecafe.com
Lummi Island Wine & Chocolate Tasting
The Artisan Wine Gallery is hosting a wine & chocolate tasting afternoon. You will tast a series of handmade tuffles and some wonderful wines from the Pacific west coast.
Artisan Wine Gallery — 360-758-2959
2072 Granger Way, Lummi Island, Washington.
The Willows Inn Restaurant
• 2579 West Shore Drive. A fine dining restaurant, with views to Rosario Straight, where evening sunsets and the occasional Orca whale, make for a special experience. Music on the deck Thursday 4:00 PM – 7:00 PM Serves dinner Friday and Saturday night, 6:00 PM – 8:30 PM, and Sunday Brunch 9:30 AM – 1:00 PM. Using the freshest ingredients, grown at Nettles Farm only minutes away, breakfasts and dinners may include seafood caught that day by our Island fisherman, or chicken, produce, and eggs fresh from the farm. (360) 758-2620.
Taproot! Pub • 2579 West Shore Drive, at the Willows Inn. Pub style offerings, as well as espresso, beer & wine. Live music on Friday nights and movie night on Sundays.
Open Monday to Saturday from 10:00 AM – 7:00 PM,
Windermere Real Estate is one of the largest independent real estate companies in the nation with a network of 300 offices and more than 7,000 agents throughout the Western United States and Mexico. The Windermere Search App for iPhone enables home buyers to search for properties by MLS number, address, and GPS-based location. It also offers the ability to receive email updates, create driving tours, search for open houses, and save favorite searches/properties using myWindermere. For more information about Windermere, please visit www.windermere.com.
This Windermere Real Estate Search App enables you to instantly access homes for sale throughout the Western U.S. and Los Cabos, Mexico. You can search with incredible accuracy and speed by MLS number, address, or around your physical location. Because the Windermere App syncs up to your myWindermere account on windermere.com, you also have access to the following features:
•Save your favorite listings
•Save multiple home searches
•Remove unwanted listings from appearing in search results
•Create Driving Tours between multiple listings and open houses
•Receive email updates when new homes hit the market
•Collaborate online with your agent
It's Not Over: Report Warns Shadow Inventory Threat Remains
Foreclosures have been falling in recent months, but two government watchdogs warn that the foreclosure crisis isn’t over yet. About 1.7 million borrowers have missed more than one payment on their government-backed mortgages, according to a newly released report by the inspectors general of the Federal Housing Finance Agency and Department of Housing and Urban Development.
The shadow inventory is made up of loans that have been delinquent for at least 90 days. If these delinquent loans become foreclosures, they could pose significant financial challenges to mortgage giants Fannie Mae, Freddie Mac, or other federal housing agencies, the report notes.
"Not only are current REO inventory levels elevated … they may rise over the next several years depending on the number of shadow inventory properties that are ultimately foreclosed on," the report stated.
According to the report, the shadow inventory is more than seven times the inventory of REOs that Fannie Mae, Freddie Mac, and HUD currently own.
"Even a fraction of the shadow inventory falling into foreclosure could considerably swell … inventories of REO properties," the report notes.
Source: “'Shadow' homes could burden U.S. housing agencies: report,” Reuters (May 31, 2013)
Did you know that of all of the 28 residential properties for sale on Lummi Island, 2 are "Short Sales" and 1 is an REO? And of those 3 "Distressed Properties" 2 are already "Pending? It's a great time to look at a vacation house or maybe a rental.
4 Big Drivers of the Housing Market Recovery
The Wall Street Journal highlighted four primary reasons why the housing market recovery is strong. They are:
- Sales have made big leaps from year-over-year levels. Existing-home sales are up 9.7 percent compared to one year ago. Sales are at an annual rate of 4.97 million, which is the highest level since November 2009, according to NAR. Despite constrained inventories and recent price gains, home sales continue to post increases.
- Non-distressed home sales are increasing. Home buyers are showing high demand for non-distressed homes. In April, about 18 percent of sales were in foreclosure or a short sale — down from 28 percent year-over-year.
- Inventories have increased. In April, the number of homes for sale rose 11.9 percent from March. The limited supply — mixed with rising buyer demand — has helped home prices to rise around 10 percent year-over-year. “Rising inventory should ultimately slow some of the price rally while boosting sales volumes, helping to restore equilibrium in the housing market,” The Wall Street Journal reports.
- Homes are selling a lot quicker. About half of all homes that were sold in April were on the market for 46 days, down from 83 days one year earlier, according to NAR data.
Source: “Four Reasons Why Home Sales Are Looking Healthy,” The Wall Street Journal (May 22, 2013)
Lummi Island Heritage Trust
Join Us, along with expert birder
tomorrow morning, Saturday at 7:30 AM
for an early morning walk on the Curry Preserve.
Learn to identify birds by sight and song.
Bring your binoculars and dress for the weather.
For more information, call 758-7997.
We hope to see you there!