is the necessary mortgage rate to impact first-time home buyers.
Nearly
87%of first-time home buyers are 26-35 years old.
Source: RESI Q2 2018.
Prices across all property types are expected to increase by
2.5%over the next 12 months.
of real estate professionals say limited supply is the primary obstacle to home buyers.
When considering the right time to buy or sell a home, an important factor in the decision should be the market's overall health, which is lagely a function of supply and demand. Knowing how close tha market is to a healthy level of activity can help buyers and sellers determine if it is a good time to buy or sell and what might happen to the market in the future.
"Understanding the factors driving the relationship between supply and demand and the outlook for the housing market is a critical part of the home buying and selling process, and buyers and sellers need a variety of sources to properly inform their housing decisions."
Buying or selling a house is a major life decision and understanding the real estate market is important part of the process. Real estate professionals, like title insurance agents are experts in their local real estate markets and have valuable insight, so we conduct a quarterly survey of title agents and real estate professionals. First American's proprietary Real Estate Sentiment Index captures these insights, providing a unique gauge on the real estate market using the crowd-sourced wisdom and expertise of real estate experts.
The estimated average percentage of 26-30 year old first-time homebuyers is
51%
"Overall, optimism among title agents and real estate professionals decreased this quarter, likely because they indicated refinance transaction volume is expected to fall in the coming year. However, while their outlook fell for purchase transaction volume growth from last quarter, it remains positive,"said Mark Fleming, chief economist at First American."Increasing mortgage rates clearly impacted optimism for the refinance market."
Real house prices changed
-37.9%
since the
pre-recession peak
It is difficult to assess if potential buyers and sellers are only looking at the number of homes sold at a single point in time. Historical context is critically important. That's why First American's proprietary Potential Home Sales Model measures what we believe a healthy market level of home sales should be based on the economic, demographic, and housing market environment.
Tweets From Mark
Follow Mark on FAEconCan homebuilders increase productivity to bridge the gap between housing supply and demand? #FirstAmEcon https://t.co/SatN9JKVld
— Mark Fleming (@mflemingecon) November 21, 2018