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
TALLAHASSEE, Fla. – Sept. 3, 2015 – Florida's new insurance consumer advocate wants Insurance Commissioner Kevin McCarty to "strongly consider" the large amount of reinsurance purchased by the state-backed Citizens Property Insurance – and to do it before the Florida-owned firm makes a decision about its requested 3.2 percent rate hike.
Consumer advocate Sha'Ron James also asked McCarty in a letter Monday to review Citizens' debt financing and water-loss claims before setting rates for 2016.
Reinsurance is essentially backup coverage purchased by insurers – an insurance policy for insurers.
"The purchase of additional reinsurance has led to the need for increased premiums, despite the decrease in the number of policies and the significant reduction in reinsurance costs worldwide," James wrote to McCarty. She questions whether the level of reinsurance Citizens carries "exceeds the level of adequacy needed to fulfill its obligation to its current policyholders."
The Florida Office of Insurance Regulation is currently reviewing the rate hike request. The new rates would vary by county and depend on a property's location, the home's style, and the type of policy.
Yesterday, the chief risk officer for Citizens Property Insurance sent a letter back to James defending the proposed rate hike.
"Citizens has secured enough reinsurance, at historically low rates, to blunt the possibility of assessments even in a benchmark severe event, known as the '100-year storm,'" Rollins said in his letter. "Better yet, much of this $6.9 billion in protection kicks in more often for smaller storms, such as a named storm with a 10 percent chance of striking each year, and it covers the case of multiple storms in a season."
According to Rollins, Floridians would have paid $11.5 billion in assessments if a 100-year storm hit four years ago, but today they would likely pay nothing.
Citizens President and CEO Barry Gilway contended last month that a "disturbing" rise in water-damage claims in South Florida has driven the need for the proposed rate increase.
Florida Realtors Sept. 2015
