Realty Reality | Urban Living
DONATE

Wednesday, October 10, 2018

Realty Reality

Posted By on October 10, 2018, 4:00 AM

  • Pin It
    Favorite
click to enlarge culture_urbanliving1-1.png

NeighborWorks America just released a rather fascinating study about national home buying trends. In its sixth annual survey, 92 percent of adults polled said home ownership is an important part of the American dream, but student debt is the predominant obstacle keeping people from purchasing a residence. Millennials and women said homeownership is quite far out of reach given their debt load. That's not surprising considering the survey also says "school-related debt has ballooned by 130 percent" since 2008, and that "student loans are towering at $1.5 trillion, comprising 42 percent of all consumer debt."

Let's break that down: 29 percent of women versus 23 percent of men surveyed are under student debt. Of those women, half "state their debt is a constant worry and 38 percent of debt-holding women personally know of someone who delayed home ownership because of their substantial financial liabilities." Minority females were found to have more debt than white women.

Buyers ask me all the time how much money they need to purchase a starter home and what first-time-buyer loans are available. There's not technically a "first-timer" loan. There are VA loans for veterans with no down payment required; FHA loans, which have a low down payment (say 3.5 percent); and conventional loans that also require zero down. If you have good credit, there are many loan options.

I heard Sam Khater, the chief economist for Freddie Mac, speak a few weeks ago. His presentation wasn't very encouraging: "We've had interest rate hikes in the past year and we're going to have more, which means inflation pressures are rising. We have low unemployment in the country but no strong wage growth, and housing affordability is rapidly declining in all major cities." He predicts we're heading for a recession around 2020 and that the housing market will slow next year, with price increases nationally averaging about 3.5 to 4 percent. But he believes housing prices will remain strong in the Intermountain West in 2019, with values going up in Utah, Nevada, Idaho and Wyoming. "Home ownership rates are dropping due to a chronic lack of supply of homes and condos to purchase," he said. "Plus, investor buyers aren't excited that virtually no one is building duplexes, tri- or four-plexes anymore." Look around downtown Salt Lake City—all those high-rise buildings going up are apartments for rent, not condos for sale. And I'll bet you haven't seen anyone build a duplex or four-plex in the past 10 years! n

About The Author

Babs Delay

Babs Delay

Bio:
De Lay is realtor/broker/owner of Urban Utah Homes and Estates. She is a former member of the Utah Transit Authority's Board of Trustees.

More by Babs Delay

  • State of the State

    A new housing study released by Utah's Kem Gardner Institute is about the worst news a potential home buyer or renter could get, as the future of improving Utah's housing shortage is looking very grim.
    • Oct 20, 2021
  • Mixed News

    Such mixed news in the past few weeks about real estate!
    • Oct 13, 2021
  • Not-So-Dry Utah

    This past August, Utah reported that sales at its state-run and state-owned liquor stores brought in more than $517 million during fiscal year 2020-21.
    • Oct 6, 2021
  • More »

Latest in Urban Living

  • State of the State

    A new housing study released by Utah's Kem Gardner Institute is about the worst news a potential home buyer or renter could get, as the future of improving Utah's housing shortage is looking very grim.
    • Oct 20, 2021
  • Mixed News

    Such mixed news in the past few weeks about real estate!
    • Oct 13, 2021
  • Not-So-Dry Utah

    This past August, Utah reported that sales at its state-run and state-owned liquor stores brought in more than $517 million during fiscal year 2020-21.
    • Oct 6, 2021
  • More »

© 2021 Salt Lake City Weekly

Website powered by Foundation