TheMReport

38 | 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 ORIGINATION Hesitant to Leave Home Homeowners who are reluctant to sell their properties and join the market play a major role in the ever- growing inventory problem, according to a new survey. T o put the U.S. housing inventory shortage into perspective, consider that existing housing inven- tory has declined, year over year, every month for the past two years. In short, it's harder and harder to find homes for sale, and when buyers do find them, competition is fierce. So what's the answer? The National Association of Realtors says it might be the grow - ing number of homeowners who think now is a good time to sell. More selling, in other words, could eventually lead to more listings. That's according to NAR's quar- terly Housing Opportunities and Market Experience (HOME) sur- vey, which found that 71 percent of U.S. homeowners think it's a good time to sell. Up from 69 percent a quarter ago and up from 61 percent a year ago, seller sentiment was most prevalent in the Midwest, where 76 percent of respondents said now is a good time to sell. The numbers could buoy hopes among renters, who, according to NAR's report, increasingly think it's a bad time to buy. Fifty-two per - cent of renters think now is a good time to buy, which is down both from last quarter (56 percent) and a year ago (62 percent). Younger households and those living in urban areas and the costlier West region are the least optimistic. Conversely, 80 percent of home - owners (unchanged from last quar- ter and a year ago) think now is a good time to make a home pur- chase. Respondents reported being less confident about the economy and their financial situations than earlier this year, despite continuous job gains in the country. According to NAR, if more people had homes on the market, buyer optimism could see an uptick. The question is if homeowners are so positive that it's a good time to sell, what's stopping them from putting up their houses? "There are just not enough homeowners deciding to sell because they're either content where they are, holding off until they build more equity or hesitant seeing as it will be difficult to find an afford - able home to buy," said Lawrence Yun, NAR's Chief Economist. "As a result, inventory conditions have worsened and are restricting sales from breaking out while contrib- uting to price appreciation that remains far above income growth." Yun also said low housing turnover is one of the roots of the ongoing supply and affordability problems that's plaguing many markets. One additional point of distress is dimming confidence about the economy's direction, which NAR said is leading households to not have as strong of feelings about their financial situation. According to HOME, respondents' confidence that their financial situation will be better in six months fell to 57.2 in June, after jumping in March to its highest reading in the survey. A year ago, the index was 57.7. "It should come as little surprise that the confidence reading among renters has fallen every month since January (64.8) and currently sits at its lowest level (53.8) since tracking began in March 2015 (65.7)," Yun said. "Paying more in rent each year and seeing home prices outpace their incomes is dis - couraging, and it's, unfortunately, pushing homeownership further away—especially for those living in expensive metro areas on the East and West Coast." Which City Boasts Most Buyer Value? According to a list of highest bang-for-your-buck neighborhoods, Yonkers takes the cake. M any different fac- tors come to mind when looking for a home. Good schools, commute time, low crime, and location of places of interest nearby bring overall convenience for the homeowner. Trulia recently examined the nation's 100 biggest metros to determine where in the U.S. first-time homebuyers would find the most value. In order to rank the metros, Trulia generated a "neighborhood value score" which takes into ac - count the cost of living and level of amenities. They used listing prices and their measure of entry- level affordability, then added measured school information, crime statistics, commute times, and community features such as restaurants. Overall, the best com - bination of price and livability in- cluded New York, San Francisco, Seattle, and Washington, D.C. Trulia clarified that their find - ings do not reflect the cheapest neighborhoods, but the best val- ue—the most bang for your buck. Neighborhoods had to score well within the categories in order to make the list. Of those that made the list initially, neighborhoods with outliers such as high crime were cut. However, not every city is perfect; some on the list do come with flaws such as being near freeways or airports or being far from the city center. Of Trulia's findings, the best values in the San Francisco area are just south of the city in Redwood City, California. Palm Park, Roosevelt, Redwood Oaks, and Woodside Plaza were among the top four neighborhoods for value. San Fran has highly-rated restaurants, low crime, and is just 30 minutes via commuter train to downtown or 15 minutes to Silicon Valley. The amenities, however, are not cheap. Median home values range from $1.1 mil - lion to $1.4 million. In greater Seattle, Burien, Washington, has the top two neighborhoods on the list: Gunthers Highland View and Gregory Heights. Actually in Seattle, North Beacon Hill and Pinehurst also bring a lot of value to the table. Yonkers, New York, in the New York metro, is home to the No. 1 neighborhood Ludlow. Outer neighborhoods Woodlawn Heights, Pelham Gardens, and Westerleigh offer great value in the city. Median home values are about $500,000.

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