Morning Briefing: Renters losing confidence in ability to buy

by Steve Randall02 Sep 2016
Renters losing confidence in ability to buy
There’s a growing disparity between the confidence of homeowners and would-be homebuyers according to a new poll by Zillow.

While owners are increasingly confident that now would be a good time to sell their home, the belief that first-time buyers can afford to make the move from renting is weakening.

Just 38 per cent of renters say now is a good time to buy and even among existing homeowners the proportion who agree has been declining over the past 2 years and now stands at 65 per cent.

That compares to 70 per cent of owners who are confident that selling now would be the right move, however they may still be reluctant to list their homes as Zillow chief economist Dr Svenja Gudell explains:

"Even though the majority of homeowners are confident and believe now is a good time to sell, they're holding off because they expect home values to continue to appreciate and want to ride the wave. They also don't want to turn around and become buyers in a competitive market.”

Mortgage rates edge higher ahead of Labor Day weekend
Freddie Mac says that average mortgage rates have increased in the past week following Fed Chair Janet Yellen’s speech last Friday.

The average 30-year FRM was 3.46 per cent in the week ending Sept.1 compared to 3.43 per cent a week earlier.

Average 15-year FRMs were up to 2.77 per cent from 2.74 per cent and 5-year ARMs averaged 2.83 per cent from 2.75 per cent.
International buyers have spent $10 billion in this market
International home buyers have spent $10 billion on property in Texas in the period from April 2015 to March 2016.

Texas Association of Realtors says that international buyers accounted for 7 per cent of national home sales and 10 per cent of those sales were in Texas, a 2 per cent rise from the previous year.

“Texas is now home to the second-largest foreign-born population size in the nation and has the seventh-highest percentage of foreign-born residents compared to statewide population,” noted Leslie Rouda Smith, chairman of the Texas Association of Realtors.

Buyers from Asia (especially China and India) made up the largest proportion of international purchases at 36 per cent, closely followed by Latin America (including Mexico) at 34 per cent.
European homebuyers made up 12 per cent, African buyers 8 per cent and Canadians 4 per cent.