Number of optimistic buyers hits all-time high

Florida Realtors®
WASHINGTON – Aug. 12, 2016 

Home purchase sentiment reached an all-time survey high in July, an indication that Americans are feeling more upbeat about the housing market, according to Fannie Mae.

Overall sentiment rose 3.3 points to a reading of 86.5. Each of the index's six components– including selling outlook and personal finances – also rose last month.

The share of consumers who said they would buy if they were going to move climbed to 67 percent, while the share of consumers who said they would rent dropped to 26 percent, an all-time survey low.

Forty-one percent of consumers expect home prices to rise over the next 12 months, an increase of 8 percentage points from June. Household income rebounded in July as well, rising 3 percentage points to 11 percent.

"The HPSI (Home Purchase Sentiment Index) reached a new survey high in July, but enthusiasm should be tempered because the increase only returns the index to a very gradual upward trend," says Doug Duncan, senior vice president and chief economist at Fannie Mae.

"One interesting potential bright note for housing in the July survey is that younger households may finally be shifting toward buying rather than renting in greater numbers," Duncan adds "Whether the shift in sentiment in July toward buying rather than renting on their next move holds up or is a temporary reaction to their view that rents are on the rise and mortgage rates will be lower, we will see. However, we are getting set to release some additional research in early August showing evidence of a broader move by older millennials in the direction of ownership."

Additional findings from the latest survey
•33% of Americans say it's a good time to buy a house, a 1 percentage point increase over June
•20% of Americans say it's a good time to sell a home, a 2 percentage point increase from June (a new survey high)
•41% of Americans believe home prices will rise, an 8 percentage point increase from June
•36% of Americans believe mortgage rates will drop over the next year.
•69% of Americans say they are not concerned with losing their job, a 1 percentage point increase from June
•11% of Americans say their household income is significantly higher than it was 12 months ago, a 3 percentage point increase from June's sharp decline

Source: Fannie Mae

U.S. Vacation Homes Sales Remain at High Level - Second Homes on Useppa Island

Baby Boomers propel demand for vacation homes.

In 2015, total annual U.S. vacation home sales reached the second highest level since 2006, according to the National Association of Realtors® 2015 Investment and Vacation Home Buyers Survey.

“Baby boomers at or near retirement continue to propel the demand for second homes”, says Lawrence Yun, NAR’s Chief Economist and Senior Vice President of Research. “The expanding pool of buyers amidst a dwindling number of bargain-priced properties led to tighter supply and fewer sales, causing the price of vacation homes to rise.”

Vacation home sales last year dipped to an estimated 920,000, down 18.5 percent from a recent peak of 1.13 million in 2014. Still, vacation sales were at the second-highest amount since 2006 (1.07 million). The median vacation home price was $192,000, up 28 percent from $140,000 in 2014.

According to Yun, many of the metro areas with the strongest price appreciation in 2015 were in the South — the most popular destination for vacation buyers - and particularly in several Florida markets. While increased buyer demand contributed to the run-up in prices, it also likely squeezed less affluent households looking to purchase vacation properties.

The survey found that more second-home buyers are choosing to invest, and investment purchases climbed 7 percent in 2015. Owner-occupied investment purchases increased 15.9 percent to 3.74 million – the highest level since 2007.

“Despite a smaller share of distressed properties coming onto the market, investment purchases reversed course in 2015 after declining for four straight years,” says Yun.

Characteristics of Vacation-Home Purchases

With more vacation buyers purchasing single-family homes (58 percent) compared to a year ago (54 percent), the share of those buying a condo (25 percent) or a townhouse or row house (13 percent) decreased in this year's survey. Forty-percent of vacation buyers purchased in a beach area, 19 percent purchased in the mountains or at a lakefront and 16 percent purchased a vacation home in the country.

Over one-third of vacation buyers plan to use their property for vacations or as a family retreat (37 percent), 16 percent bought for future retirement plans and only 7 percent purchased to generate income through renting the property, a decrease from 11 percent in 2014. 

Florida Association of Realtors®, August 2016
National Association of Realtors®, April 2016

204 Useppa Island Just Sold!

We're welcoming more new neighbors to Useppa Island. Ron and Maria Brown, from Winter Haven Florida, are our newest residents. With 204 Useppa Island their new favorite place, they've renamed the cottage "Tranquility." They've grown very fond of the Useppa Lifestyle, calling our little paradise "A Magical Place." 

Welcome to Island Life!

It Pays to Work with a Realtor - Homes on Useppa Island

When you're thinking of buying or selling and the list of tasks is just to much to bear...call us!  Resident Realtors® - Resort & Second Home Property Specialists.

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Realtor® Association of Fort Myers and the Beaches

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National Association of Realtors®