MReport July 2017

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52 | TH E M R EP O RT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Rural, Urban or Suburban: Who Wants to Buy More? Americans feel the same about homeownership regardless of location, except when it comes to how long they'll stick around. D espite talk of the rural-urban divide, Americans seem to share the same sentiments about homeowner - ship, regardless of their location. According to new data recently released by ValueInsured, nearly the same amount of residents in rural, suburban, and urban areas said that buying a home is more financially beneficial than renting, and around the same amount said homeownership is an important part of their American Dream. According to ValueInsured, 78 percent of Americans living in rural areas believe buying a home is more beneficial than renting. Suburban and urban residents came in at 79 percent and 83 percent, respectively. Seventy-six percent of rural and suburban Americans also said owning a home was a part of their American Dream, while 80 percent of urban resi - dents shared the sentiment. As for desire and intent to buy, 81 percent of urban nonhome- owners said they would like to purchase a home, and 74 percent said they would do so right now, if they could afford it. Suburban residents had largely the same response, with 80 percent saying they want to buy and 77 percent saying they would do so now, if it were affordable. Rural nonhome - owners came in at 97 percent and 81 percent on the same senti- ments, respectively. The three groups only diverge on homeownership topics when it comes to length of stay. While 71 percent of suburban and rural Americans plan to stay in the next home they buy for seven years or more, only 35 percent of urban homebuyers say the same. According to ValueInsured, this "transient nature" is likely due to the younger average age of urban residents, compared to those in more suburban and rural areas. According to ValueInsured's report, "Not surprisingly, the more transient nature of urban homeownership is correlated with the younger average age of our ur - ban respondents, at 38.4 years old, compared to our average rural respondent, who is 47.6 years old. This also correlates with twice as many urban respondents who describe the next home they plan to buy as a 'starter home.'" Jobs may also play a role in the urban buyer's less-than-long-term plans. "Urban homebuyers' plan to move more frequently is also likely related to their shorter job tenure and more mobile job locations," ValueInsured reported. "Seventy percent of urban home - buyers say the possibility of a job change or job loss makes them worry about the risk of buying a home, while only 30 percent of rural and 42 percent of suburban respondents say the same." According to ValueInsured, urban buyers are also more likely to rely on their family members financially to purchase a home than rural and suburban ones are. 18 of 20 Metros Report Homes Appreciating in Value Hesitant sellers are driving home prices up in most of the nation's biggest markets. R ecent data from the S&P CoreLogic Case Shiller In- dices showed a slow-but- steady rise in the price of homes on all three of the indexes measured, a trend which David Blitzer, the Managing Director and Chairman of the Index Commit - tee at S&P Dow Jones, thinks will continue in the months ahead. "Over the last year, analysts suggested that one factor pushing prices higher was the unusually low inventory of homes for sale," Blitzer said. "People are staying in their homes longer rather than selling and trading up. If mortgage rates, currently near 4 percent, rise further, this could deter more people from selling and keep pres - sure on inventories and prices." The S&P CoreLogic Case- Shiller Indices is a trio of indices that measure change in the prices of residential homes on a na - tional composite average, a 10-city composite average, and a 20-city composite average. National Composite Index: For the year ending in March, the national average rose 0.1 percent, from 5.7 percent to 5.8 percent, the highest it has been in the last 33 months. From February to March, the index gained 0.8 percent before seasonal adjustments and 0.3 percent after. 10-City Composite Index: The 10-City Composite Index, which is composed of the Boston, Chicago, Denver, Las Vegas, Los Angeles, South Florida, New York, San Diego, San Francisco, and Washington, D.C. metros, also saw increases in home prices. Year-over- year saw a 5.2 percent increase, while month-over-month, both the seasonally and nonseasonally adjusted data reported a 0.9 percent increase—the same as in February. 20-City Composite Index: The 20-City Composite Index showed results similar to its smaller coun - terpart. Nonseasonally adjusted month-to-month measurements showed a 1 percent increase in the price of homes, with 18 out of the 20 metro areas measured report - ing average increases. The only two metros that reported cheaper houses were Cleveland and Tampa, Florida. Once the index was seasonally adjusted, that number fell to 0.9 percent, and the Chicago metro joined the ranks of eroding house prices. Year-over-year, the average increase held at 5.9 percent. Outliers: The areas with the highest increases in home prices year-over-year were metros in the Pacific Northwest and Southwest: Seattle, with a 21.3 percent increase; Portland at 9.2 percent; Dallas with 8.6 percent; and Denver at 8.5 percent. Cities along the East Coast showed the lowest year-over-year increase; namely, New York at 4.1 percent and Washington, D.C., at 4.2 percent. "Over the last year, analysts suggested that one factor pushing prices higher was the unusually low inventory of homes for sale." —David Blitzer, S&P Dow Jones

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