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The World of Real Estate - US - August 2015

"The real estate market has begun to recover from the recent crisis. Mortgage rates are still low, housing prices have rebounded in many markets, and most people have a positive attitude toward buying property. However, there are social trends and economic challenges that are influencing the market, causing a shift toward renting rather than purchasing."

This report covers the following issue:

  • A shift toward renting

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • The issues
          • A shift toward renting
            • Figure 1: Percentage of households that own vs. rent homes, 2004-14
            • Figure 2: Home ownership rates, by age, 2004-14
            • Figure 3: Attitudes toward home ownership, by generation, May 2015
          • The opportunities
            • Single people
              • Figure 4: Home ownership/plans to purchase home, by marital status, May 2015
            • Single women are buying more homes
              • Figure 5: Adult composition of home buyer households, 2014
              • Figure 6: Chase and Capital One mortgage ads, 2015
            • What it means
            • The Market – What You Need to Know

              • Housing sales are strong and strength is forecast to continue
                • Inventory is falling
                  • Permits for multiunit buildings are on the increase
                    • Sale prices are rising faster than rents
                      • Mortgage rates are staying low
                        • More foreigners are purchasing homes
                        • Market Size and Forecast

                          • Historic and projected sales performance
                            • Figure 7: Total US value sales and forecast of housing, at current prices, 2010-20
                          • Growth in existing home sales continues
                            • Figure 8: Existing home sales, June 2014-June 2015
                          • Inventory is falling
                            • Figure 9: Existing homes inventory, Jan. 2102-June 2015
                        • Market Breakdown

                          • Permits for multiunit buildings are rising faster than for single-family units
                            • Figure 10: Number of permits for new privately owned housing units, Jan. 2004-June 2015
                        • Market Perspective

                          • Median sales prices are rising faster than median rents
                            • Figure 11: Median house prices and rents, 2004-14
                        • Market Factors

                          • Unemployment continues to fall
                            • Figure 12: Unemployment rate, June 2015-June 2015
                          • Mortgage rates are trending down
                            • Figure 13: Mortgage rates, July 2005-July 2015
                          • Mortgage debt
                            • Figure 14: Total mortgage debt, Q1 2005-Q1 2015
                          • Rents are rising
                            • Figure 15: Monthly rents, by region, 2004-Q1 2015
                            • Figure 16: Live rent-free to save money for a down payment, by generation, May 2015
                          • An increase in foreign buyers
                            • Figure 17: Number of sales to foreign buyers, 2009-15*
                            • Figure 18: Dollar volume of sales to foreign buyers, 2009-15*
                        • Key Players – What You Need to Know

                          • The return of the first-home buyer
                            • Lenders are loosening mortgage restrictions
                              • More people are up-to-date on their mortgages
                                • Consumers have positive attitudes about real estate
                                  • Fewer people own homes
                                  • What’s Working?

                                    • First-time home buyers coming back
                                      • Figure 19: Plan to buy in next five years, by generation, May 2015
                                    • Mortgage restrictions are beginning to loosen
                                      • Figure 20: Movement of credit standards on all types of residential mortgages, by type of mortgage, April 2015*
                                    • Mortgage delinquencies are decreasing
                                      • Figure 21: Percentage of mortgage balances 90+ days delinquent, Q1 2005-Q1 2015
                                    • Consumer attitudes indicate strong market ahead
                                      • Figure 22: Attitudes toward homeownership, by home ownership status, May 2015
                                  • What’s Struggling?

                                    • Homeownership rates are falling
                                      • Figure 23: Home ownership rates, by age, 2004-14
                                  • What’s Next?

                                    • Trulia going mobile
                                      • Xome
                                        • Interest-only loans are back
                                        • The Consumer – What You Need to Know

                                          • Houses are purchased, condos are rented
                                            • Mortgages are king
                                              • Owning a home is not important to everyone
                                                • Why people rent
                                                  • Online home-search tools are important
                                                  • Homeownership

                                                    • Most own a home
                                                      • Figure 24: Homeownership, May 2015
                                                    • Homeownership among young women is lagging
                                                      • Figure 25: Homeownership, by generation and age, May 2015
                                                    • Renting is more popular among women
                                                      • Figure 26: Residence rental, by gender and age, May 2015
                                                    • Ownership of non-primary residences
                                                      • Figure 27: Ownership of non-primary residence, by generation, May 2015
                                                  • Reason for Buying Non-primary Residence

                                                    • Second homes are primarily for vacation
                                                      • Figure 28: Purpose of secondary residence, May 2015
                                                  • Financing a Real Estate Purchase

                                                    • Mortgage for a primary home, cash for a second home
                                                      • Figure 29: Method of financing home purchase, by type of home, May 2015
                                                  • Purchase or Rent?

                                                    • Owning a home is not a primary financial goal for most consumers
                                                      • Figure 30: Importance of owning a home, by household income, generation, parental status, May 2015
                                                    • Who plans to buy a home next?
                                                      • Figure 31: Plan to purchase home in next five years, by generation, Hispanic origin, area, May 2015
                                                  • What Do Renters Think?

                                                    • Not everybody wants to buy
                                                      • Figure 32: Attitudes toward home ownership, by home ownership status, May 2015
                                                    • Some renters may just be leery of the market
                                                      • Figure 33: Attitudes toward home ownership, by ownership status, May 2015
                                                    • Reasons for renting
                                                      • Figure 34: Reasons for renting a residence, May 2015
                                                    • Women are having trouble saving for a down payment
                                                      • Figure 35: Reasons for renting a residence, by gender and age, May 2015
                                                  • The Home-buying Process

                                                    • More home searching done online
                                                      • Figure 36: Researched properties online, by gender and age, May 2015
                                                    • But real estate agents are still important
                                                      • Figure 37: Preference for using real estate agent, by generation, May 2015
                                                    • Real estate agents are more popular with those with high incomes
                                                      • Figure 38: Preference for using real estate agent, by household income, May 2015
                                                    • Real estate agents help with mortgages
                                                      • Figure 39: Used mortgage lender recommendation from real estate agent, by generation, Hispanic origin, and parental status, May 2015
                                                    • Opportunities for real estate agents
                                                      • Figure 40: Preference for using real estate agent – CHAID – Tree output, May 2015
                                                  • Attitudes Toward Homeownership

                                                    • Most think homeownership is important
                                                      • Figure 41: Importance of homeownership, May 2015
                                                      • Figure 42: Attitudes toward homeownership, by homeownership, May 2015
                                                  • Real Estate as an Investment

                                                    • Most believe real estate is a smart investment
                                                      • Figure 43: Attitudes toward real estate as an investment, by generation, May 2015
                                                    • Married couples are more positive about real estate as an investment
                                                      • Figure 44: Attitudes toward real estate as an investment, by marital status, May 2015
                                                  • Appendix – Data Sources and Abbreviations

                                                    • Data sources
                                                      • Fan chart forecast
                                                        • Consumer survey data
                                                          • Direct marketing creative
                                                            • Abbreviations and terms
                                                              • Abbreviations
                                                                • Terms
                                                                • Appendix – CHAID Analysis Methodology

                                                                  • Methodology
                                                                    • Figure 45: Attitudes toward home ownership– CHAID – Table output, May 2015

                                                                Companies Covered

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                                                                The World of Real Estate - US - August 2015

                                                                £3,199.84 (Excl.Tax)