Geoff Ramsey: To Buy Or Not To Buy?

Thursday, August 30, 2018 - by Geoff Ramsey, President, Greater Chattanooga Realtors

Despite weakening optimism from non-homeowners at the end of last year that now is a good time to buy, an overwhelming majority said they do want to own a home in the future and believe homeownership is part of their American Dream.

 

That is according to new consumer survey data from the National Association of Realtors®(NAR), which additionally found that non-homeowners’ lifestyle changes and improvements in their financial situation outweigh seeing their rent increase as the main motivators for deciding to buy a home.

 

NAR’s Aspiring Home Buyers Profile analyzed 2017 quarterly consumer insights from its Housing Opportunities and Market Experience (HOME) survey to capture the housing expectations and sentiment of non-homeowners – both renters and those living with a family member.

 

When asked for the primary reason non-homeowners currently do not own, an increasing share of them over the past year said it was because they are unable to afford it.

56 percent of non-owners indicated they could not afford to buy a home each quarter, with the share feeling this way reaching its highest in the last three months of the year.

 

The swift price growth and painfully low supply levels in much of the country in 2017 also appeared to have dealt a blow to the confidence among non-owners that now is a good time to buy. After reaching a high of 62 percent in the third quarter, the share of non-owners who believed now is a good time to buy slipped to 58 percent at the end of the year.

 

Even with the dip in morale about buying over the past year, respondents’ views about homeownership are still overwhelmingly positive. Roughly three-quarters of non-owners each quarter said that they eventually want to own a home and also believe that owning a home is part of their American Dream.

 

As for the main reasons non-owners would buy a home in the future, a change in lifestyle such as getting married, starting a family or retiring was the top choice (24 to 32 percent each quarter), followed by an improvement in their financial situation (26 to 30 percent each quarter) and the desire to settle down in one location (12 to 16 percent each quarter).

 

According to the survey, roughly half of current renters expect their rent to increase this year (51 percent). If in fact their rent does increase, most indicated that they would resign their lease (42 percent) or move to a cheaper rental (25 percent). Only 15 percent of renters said they would consider purchasing a home.

 

Housing demand in 2018 has been fueled by more millennials deciding to marry and have kids and the expectations that solid job growth and the strengthening economy will push incomes higher. said Yun. However, increasing prices and mortgage rates also has caused affordability pressures to persist. That is why it is critical to see an increase in new and existing housing supply. Otherwise, many would-be first-time buyers will be forced to continue renting and not reach their dream of being a homeowner.

 


Decision On Controversial Single-Family Home Project Near Pineville Road Delayed Until Dec. 11

Normandy Apartments In Red Bank Sell For $5,850,000

Real Estate Transfers For Nov. 1-7


A controversial project involving the construction of 61 single-family homes on Stringer's Ridge above Pineville Road has been delayed. A number of nearby residents protested the project ... (click for more)

The Normandy Apartments in Red Bank have sold for $5,850,000. The complex is at 3507 Dayton Blvd. The sale was from Robert W. Monday to Andrew Sephos Raymus Tr, Toni Marie Raymus Tr, Marie ... (click for more)

NOTICE: The Hamilton County Register’s Office did not publish this data. All information in the Register’s Office is public information as set out in T.C.A. 10-7-503. For questions regarding ... (click for more)


Real Estate

Decision On Controversial Single-Family Home Project Near Pineville Road Delayed Until Dec. 11

A controversial project involving the construction of 61 single-family homes on Stringer's Ridge above Pineville Road has been delayed. A number of nearby residents protested the project by William Wilson of Beason View Land Company at a meeting of the City Council. Donna Shepherd, representing the developer, asked for a 30-day deferral to hold a community meeting and ... (click for more)

Normandy Apartments In Red Bank Sell For $5,850,000

The Normandy Apartments in Red Bank have sold for $5,850,000. The complex is at 3507 Dayton Blvd. The sale was from Robert W. Monday to Andrew Sephos Raymus Tr, Toni Marie Raymus Tr, Marie Antoinette Raymus Tr, Andrew S. Sephos and Toni Marie Raymus Community Property Trust. (click for more)

Breaking News

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Grundy County Deputy Charged With Voluntary Manslaughter In Chase Shooting Death

An officer-involved shooting investigation in Grundy County by special agents with the Tennessee Bureau of Investigation has resulted in the indictment of a deputy, charged with voluntary manslaughter. At the request of 12 th District Attorney General Michael Taylor, on Dec. 24, 2017, TBI special agents responded to an officer-involved shooting that occurred around 10:30 p.m. ... (click for more)

Opinion

County Commissioners, Stop Pandering And Lead

There is no shortage of public need in Hamilton County, and only a limited amount of revenue and capital bond issues. I cannot admire or appreciate an elected Hamilton County Commission that leads by warm and fuzzy kitty emotions over real and tangible needs. As Commissioner Tim Boyd correctly stated, there is immediate and emergent need for police and fire training facilities. ... (click for more)

Roy Exum: The Lamar Rants

Being a child of the South, I’ve marveled at our funny sayings for all of my life. I’ve been at a football game and heard a disgruntled fan in the stands say of his team’s quarterback, “That boy couldn’t play dead in a cowboy movie.” I’ve been at the Sunday supper table and heard, “I’m of a mind each one of his sermons is better than the next.” And I’ve sat in a Saturday morning ... (click for more)