Morning Briefing: Low income homebuyers more likely to pay cash?

by Steve Randall14 Mar 2017

Low income homebuyers more likely to pay cash?

Homebuyers in Pennsylvania who paid cash were also more likely to be on low incomes, the Pennsylvania Association of Realtors reports.

"While is seems counterintuitive that 1 in 3 buyers with incomes under $50,000 reported buying homes in cash, age may be driving a higher share of lower-income respondents reporting cash-only purchases," said PAR President Kathy McQuilkin.

The association’s data shows that three quarters of cash-only buyers were over 50 years old along with two-thirds of those with an income below $50,000.

Overall, the proportion of cash-only buyers slipped in the first quarter of 2017 to below 25 per cent having peaked at 30 per cent in the previous quarter.

The association’s Welcome Home survey also discovered that 23 per cent of homeowners are unsure how long they will stay in their current home, rising from 14 per cent in the last quarter of 2016.

 

US cities lag for quality of living

Cities in the United States are well behind global competitors for quality of living according to a new global survey.

Mercer’s annual survey is topped by Vienna with Zurich, Auckland, Munich and Vancouver completing the top 5. Elsewhere in North America, Toronto ties with Melbourne in 16th while Ottawa is 18th and Montreal is 23rd.

The best ranked city in the US is San Francisco at number 29 in the survey, which is based on several factors which might influence a company when sending employees on assignment aboard.

Boston is at 35, Honolulu at 36, New York at 44, Seattle at 45, Chicago at 47, Washington at 49, Pittsburgh at 55, Philadelphia at 56, Los Angeles at 58, Minneapolis at 62, Dallas at 64, Atlanta at 65, Houston at 67, Miami at 68, St Louis at 70 and Detroit at 71.

“Economic instability, social unrest, and growing political upheaval all add to the complex challenge multinational companies face when analysing quality of living for their expatriate workforce,” said Ilya Bonic, senior partner and president of Mercer’s Career business.

 

Homeowners are increasingly satisfied with insurers

Homeowners are more satisfied with their insurance company than ever before, a survey by JD Power shows.

With around 1 in 15 homeowners making a claim on their insurance policy each year, the study gives insurers a record score of 859 out of 1000 for satisfaction, despite many claims in 2016 for severe weather events.

Five factors are considered when assessing policyholder satisfaction: settlement; first notice of loss; estimation process; service interaction; and repair process.

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