New NAR report discovers how and why REALTORS choose real estate as a career
The majority of REALTORS self-initiated their career in real estate and identify strong people skills as the most important trait to be a successful agent, according to the National Association of REALTORS’ new research report, “Choosing a Career in Real Estate: A Perspective on Gender, Race and Ethnicity.”
In addition, nearly seven in 10 REALTORS found flexible hours to be the most attractive aspect about being a real estate agent, followed by interest in the industry (64 percent), working with people (54 percent), entrepreneurial field (50 percent) and salary possibilities (49 percent).
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New York State foreclosure filings down in third quarter, up for September
In its U.S. Foreclosure Market Report for the third quarter of 2017, ATTOM Data Solutions reported that New York State ranked 11 out of all 50 states for quarterly total foreclosure filings. New York had 13,114 total foreclosure filings in the third quarter, and 4,886 of them were in the month of September.
Foreclosure filings in New York State fell 10.59 percent from the previous quarter and 18.34 percent from the third quarter of 2016. September’s foreclosures were up 15.21 percent from August, and 3.5 percent from September 2016. One in every 623 housing units in New York State received a foreclosure filing in the third quarter, and on in every 1,672 received a foreclosure filing in September.
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Most common contingencies buyers request
Ninety-one percent of closed sales in August contained a sales contingency, allowing a buyer or seller to back out of the contract if certain conditions were not met. This percentage was reported in the August 2017 REALTORS Confidence Index Survey.
The most common contract contingencies in August were related to passing home inspections (19 percent); the buyer obtaining financing (19 percent); and appraisal contingencies (15 percent).
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Refinance scams target military vets
The federal government is investigating a number of predatory lending schemes targeting thousands of veterans who have Veterans Administration mortgages. Officials say the scams aim to convince borrowers to repeatedly refinance, ultimately paying more on their loans. Some lenders also are being accused of using teaser interest rates, “cash out” windfalls, and lower monthly payments, using marketing materials that sometimes resemble Department of Defense information.
The VA warned that lenders who make “improper charges or fees” that lead to foreclosure will face stiff penalties. The Consumer Financial Protection Bureau plans to fine and sue lenders who propagate these abuses.
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SRI: Home buying plans down in latest consumer sentiment poll
According to the latest poll by the Siena Research Institute (SRI), New York State consumer home buying plans were at 5.4 percent, down from 9.2 percent. Overall, New York State consumer confidence stands at 90.5, down 1.6 points from the last measurement in June 2017. New York’s overall consumer confidence is 4.6 points below the nation’s index of 95.1.
Buying plans were also down for consumer electronics and major home improvements. Buying plans were up in September for cars/trucks and furniture.
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Loan demand stalls as buyers, owners pause
Mortgage applications to purchase a home and for refinancing barely budged last week, according to the Mortgage Bankers Association. Economists are blaming the stall in loan demand on rising interest rates and rising home prices.
Total mortgage applications for refinances and home purchases decreased 0.4 percent last week compared to the previous week on a seasonally adjusted basis. Volume is now 24 percent lower than a year ago. Interest rates are also significantly higher than a year ago too.
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Consumers say 10 percent is the ideal down payment
More than half of Americans say they would prefer to put 10-percent down on a home purchase rather than 15 percent, 20 percent, or 30 percent, according to mortgage banker American Financing’s 2017 Mortgages in America survey. The 10-percent down payment option was the lowest among the choices respondents were given in the survey. It also was the most popular choice across generational divides including millennials, Generation Xers and baby boomers.
The average down payment on a home purchase in 2016 was 11 percent, according to the National Association of REALTORS’ 2017 Aspiring Home Buyers Profile. Borrowers under the age of 35 put down an average of 8 percent, according to NAR’s report.
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New York State’s REALTORS urge the NY Congressional Delegation to oppose tax reform plan
Albany – Sept. 28, 2017 – The following is a statement by New York State Association of REALTORS CEO Duncan R. MacKenzie:
“Apparently some federal lawmakers suffer from amnesia. The Great Recession was a direct consequence of the housing market collapse. The tax reform plan being floated in Washington will certainly put the brakes on what is now a healthy housing market and strong overall economy.
Moreover, it will harm middle-class homeowners across America, especially those in New York State. These are the very people this plan is supposed to help. Currently, the average Empire State homeowner saves $2,200 a year from the Mortgage Interest Deduction and another $2,120 from the real estate tax deduction, according to data from the Internal Revenue Service and the National Association of REALTORS.
The plan now under consideration devalues the mortgage tax deduction and eliminates the deductibility of state and local taxes. It will increase, not reduce, the income tax burden for the vast majority of New Yorkers. If enacted, this will immediately drain the equity so many middle-income earners have built through homeownership.
Tax reform, a worthy endeavor, should improve the economic health of taxpayers by distributing the burden equitably.
For these reasons, New York State’s REALTORS call on our Congressional delegation to vehemently oppose this tax reform plan.”
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New home sales fall for Northeast and nationally in August
Sales of newly-built, single-family homes in August fell 2.6 percent to a seasonally adjusted annual rate of 38,000 in the Northeast, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Nationally, sales fell 3.4 percent to a rate of 560,000.
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First-time homebuyers remain skittish
First-time homebuyers comprised 31 percent of closed sales in August, according to the REALTORS Confidence Index Survey. While the share of first-time buyers has seen gradual improvement since the lows of less than 30 percent in 2013, many potential buyers still are on the sidelines, according to the National Association of REALTORS’ report.
The homeownership rate in the second quarter for those under the age of 35 only increased slightly to 35.3 percent (from 34.3 percent in the first quarter). The homeownership rate for the 35- to 44-year-old age group posted a slight decrease to 58.8 percent from 59 percent in the first quarter.
The environment may be good for first-time buyers, particularly since employment has been growing and interest rates are at historic lows. However, young adults face many setbacks into homeownership, such as difficulties in obtaining credit, high price growth compared to income growth, and student debt.
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Study finds green home building continues to gain traction
One third of builders surveyed say green building is a significant share of overall activity, and many have built a net zero home, according to the “Green Multifamily and Single Family Homes 2017 SmartMarket Brief” published by the National Association of Home Builders. Green construction is rapidly gaining traction among both single family and multifamily home builders.
Increasing energy efficiency continues to be the most common method of improving the performance of a green home, followed by creating a healthy indoor living environment.
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Fed hints at looming December rate hike
The Federal Reserve recently voted to leave its short-term rates unchanged, but it did indicate that a rise to its short-term interest rates is likely on track for later this year.
The Fed kept its key rates near zero for seven years. But since 2015, it has gradually raised rates by a quarter of a percentage point four times. Most recently it raised rates in June at a range of between 1 percent and 1.25 percent.
NAR Chief Economist Lawrence Yun predicts that the 30-year fixed-rate mortgage may rise to slightly above 4 percent by the end of the year, and may reach just 4.7 percent by the end of 2018.
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