Thursday, February 9, 2017

What is holding home buyers back?

Are real or imaginary barriers keeping you from becoming a home owner?

Home ownership is a part of the American Dream, and we want to help you achieve 
your goals of home ownership and helping you move to the next adventure by moving 
to a home and community that meets your needs as your life changes throughout the 
years. Call us anytime, we want to help you plan for your goals.
So here are some industry facts about why non-homeowners are hesitant even when 
the National Association of Realtors (NAR) confirms that the American Dream includes 
home ownership from a report that shows over 90 percent of homeowners and roughly 
eight out of 10 non-homeowners each quarter say owning a home is important to them.
Despite these positive feelings of home ownership, optimism about it being a good time 
to buy diminished among non-owners over the 2016 year. The percentage who believed 
it was a good time to buy declined. We think it may be a lack of information holding 
people back from entering the home buying market.
There are financial reasons holding people back, one reason sited for the tendency to 
not enter the housing market by Lawrence Yun, NAR chief economist, is the desire to 
own a home and the ability to do so are not on the same wavelengths for many 
households. "Nearly all non-homeowners said they want to own a home in the future 
(87 percent), but it's evident that higher rents and home prices — up 41 percent in the 
past five years — along with limited entry-level supply and repaying student debt have 
combined to make buying a challenging goal," he said. jAnother reason cited from NAR's 
analysis that carrying student debt is causing many non-owners to delay purchasing a 
home. "In addition to having to postpone important milestones such as getting married 
and starting a family, many young adults are financially falling behind previous generations 
in part because of having to prioritize repaying their sizeable student loans over buying a 
home and saving for retirement," said Yun.  

Affordability?

Being unable to afford to buy a home was the number one reason non-owners cited as to 
why they don't own. Over half of non-owners indicated they could not afford to buy, 
while roughly one-fifth said they needed the flexibility of renting. But is this true?  And, 
even so, you plan so many things, so why aren't you planning for your first home, or to 
make your move?  We are always happy to meet with you to determine what you 
need and connect you with lending professionals that can help create a plan for 
you to reach your real estate goals. Whether your plan takes a few months, or a 
few years, we truly are always happy to be working with you to stay on track, and 
help make your goals your reality.

Confusion about down payments and other costs with a mortgage?  

Apparent confusion about down payment requirements may also be behind non-owners'
 lagging confidence about buying. NAR's Profile of Home Buyers and Sellers has shown 
that the median down payment for first-time buyers has been 6% for three straight years 
and 14% for repeat buyers in three of the past four years. And, programs like FHA offer 
down payments as low as 3.5%, and affordable loan option programs available in our 
market, many offered by OHFA, can even help with your dream of home ownership. 
However, when asked about the amount of a down payment needed to purchase a home, 
a remarkable 87% of non-owners indicated that a down payment of 10% or more is 
necessary. So the ultimate goal of owning a home may not be as far-fetched as 
many believe. 
If you are interested in buying your first home in 2017, contact us! We love to sit down 
and review the buying process, and connect your with trusted partners we work (lenders, 
attorneys, home inspectors) so you can also review your finances, sit down with a lender 
to determine what your mortgage options are, or what plan you need to follow to qualify 
for a mortgage you need, then it won't be long before we can get started on your 
home search.
My promise to my clients: I try to always remember what it is like to walk into this incredibly complex world of buying and selling with little or no knowledge of how 
the process works. I know that behind the door of your home and in your life there 
is much more going on than just your real estate transaction. I work with each 
person, not the house, and with the whole person, not just the issues surrounding 
the transaction. When I attempt to put myself in your shoes and contemplate what 
you are dealing with  I am most effective.
The Benadum Team

Amy Bumpus
Straight Talk & Finding Solutions

614-657-2005
talk or text




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