First-Time Buyers Face Rosier Prospects in 2015

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Jan 9, 2015 January 15th, 2015Jonathan Smoke

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By: Jonathan SmokeJanuary 15th, 2015 

  

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It’s official: 2014 was the best year for total job growth since 2000. The housing market now has a confluence of several important demand-boosting factors that should make 2015 a big year for growth in home sales.
First, mortgage rates remain—at least for the time being—at near historic lows. The latest reprieve from higher rates is thanks to the bond market’s reaction to global economic concerns. Yet, as the jobs data indicate, the U.S. economy is on much better footing than the rest of the world.

Key factors for first-time buyers

But the key issue for first-time buyers has not been rates, which have been historically low for several years. Their employment situation, overall level of confidence, ability to qualify for credit and ability to afford the down payment have been the larger issues.
December data show that employment for younger households, in particular, has improved dramatically in the past year. For example, more civilian jobs for 25- to 34-year-olds were created in 2014 than in any other year since 1987.
Mortgage backers Fannie Mae and Freddie Mac clarified their credit qualification standards in the fall, which had been murky since 2009 legislation enacted in reaction to the housing bust. This should make it easier for many would-be home buyers to get a loan with slightly lower FICO scores and slightly higher loan-to-income and debt-to-income ratios.
The new low-down-payment programs announced in December from Fannie Mae and Freddie Mac will make conventional mortgages more accessible to first-time buyers.

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Realty World South Florida trip to RIVA

U.S. consumer confidence hits seven-year high

NEW YORK – Aug. 26, 2014 – U.S. consumers continue to feel better about the economy as the Conference Board Consumer Confidence Index hits 92.4 – its fourth consecutive monthly increase and the highest level in almost seven years.
In July, the Index stood at 90.3. The Present Situation Index that gauges attitudes about today increased to 94.6 from 87.9. However, the Expectations Index, which gauges attitudes about the future, edged down slightly to 90.9 from July's 91.9.
"Consumer confidence increased for the fourth consecutive month as improving business conditions and robust job growth helped boost consumers' spirits," says Lynn Franco, director of economic indicators at The Conference Board.
"Looking ahead, consumers were marginally less optimistic about the short-term outlook compared to July, primarily due to concerns about their earnings," she adds. "Overall, however, they remain quite positive about the short-term outlooks for the economy and labor market."
Current conditions
Consumers saying business conditions are "good" edged up to 23.9 percent from 23.3 percent, while those claiming business conditions are "bad" declined to 21.5 percent from 22.8 percent.
Consumers' assessment of the job market was also more positive. Those stating jobs are "plentiful" increased to 18.2 percent from 15.6 percent, while those claiming jobs are "hard to get" declined marginally to 30.6 percent from 30.9 percent.
Short-term economic outlook
The percentage of consumers who expect business conditions to improve over the next six months held steady at 20.4 percent, while those expecting business conditions to worsen fell to 10.2 percent from 12.1 percent.
Consumers, however, were somewhat mixed about the outlook for the labor market. Those anticipating more jobs in the months ahead fell to 17.0 percent from 18.7 percent, although those anticipating fewer jobs also declined to 15.8 percent from 16.6 percent.
Fewer consumers expect their incomes to grow: 15.5 percent in August versus 17.7 percent in July. Those expecting a drop in their income rose marginally to 11.9 percent from 11.1 percent.
Consumer confidence hit a low of 25.3 in February 2009. In the 20 years before the recession, however, it averaged 102.
Nielsen conducts the monthly Consumer Confidence Survey, based on a probability-design random sample, for The Conference Board. The cutoff date for the preliminary results was Aug. 14.
© 2014 Florida Realtors®
 

Homelessness: Gov. signs bill, HUD allocates money

WASHINGTON – June 20, 2014 – The fight to help Florida's homeless population received positive news today from two fronts: Gov. Scott signed HB 979, a bill backed by Florida Realtors; and the Department of Housing and Urban Development (HUD) allocated over $10 million dollars to 40 programs that serve Florida's homeless residents.

Florida HB 979

A bill passed by the 2014 Florida Legislature introduced by Rep. Kathleen Peters (R-St. Petersburg) establishes challenge grants for local homeless coalitions, nonprofits and other agencies that assist the homeless. It also provides the agencies with training and technical assistance. It's effective July 1.

A final analysis of the bill is available online. It includes of overview of Florida's homeless agencies and how the program is organized.

HUD funding

HUD Secretary Shaun Donovan announced Florida agencies for the homeless would receive $10,207,015 through a second round of grants. Nationwide, HUD granted $140 million to nearly 900 local homeless assistance programs.

Provided through HUD's Continuum of Care Program, the funding announced will ensure additional permanent and transitional housing renewal projects are able to continue operating in the coming year, providing housing and support services to families experiencing homelessness.

"Communities all across the country are changing their approach to reducing homelessness and now is not the time to retreat from doing what we know works," said Donovan.

Earlier this year, HUD awarded $1.6 billion in the first round of funding to more than 7,100 existing local homeless programs operating across the U.S.

Homelessness: Gov. signs bill, HUD allocates money