Income Increases Boosting Housing Optimism

The number of households saying their income is significantly higher than it was a year ago is on the rise, as is the number expecting their financial situation to continue to move significantly higher over the next year — both reaching all-time survey highs in Fannie Mae’s January 2015 National Housing Survey, a poll of 1,000 Americans’ attitudes toward owning and renting a home.

Twenty-nine percent of households say their income is “significantly higher” now than it was 12 months ago. Also, 48 percent say they expect their personal financial situation to improve over the next year.

The increases in income are translating into higher optimism about the housing market. The number of households who said it was a good time to buy a home rose 3 percentage points in January to 67 percent, according to the survey. Also, the share of households who say they’d rather buy than rent if they were to move rose 5 percentage points to 66 percent, marking the first increase since September 2014, the survey shows. What’s more, 44 percent of households now say it’s a good time to sell, tying an all-time survey high.

“Consumers are as positive about their personal finances at the start of 2015 as they have been since we launched the National Housing Survey in 2010, and this optimism seems to be spilling over into housing market attitudes,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “Consumers are more optimistic about the environment both for buying and for selling a home today, and the share who plan to own on their next move has jumped back up, reversing a three-month trend toward renting. … Overall, these are good signs to start off 2015 and are consistent with our expectation that strengthening employment and economic activity will boost the speed of the housing recovery.”

Additional findings from Fannie Mae’s January survey include:

  • The majority of households believe home prices will rise over the next year, an average of 2.5 percent over the next 12 months.
  • 45 percent of respondents say they believe mortgage rates will also rise over the next year, falling by 3 percentage points compared to one month earlier.
  • 52 percent of respondents believe home rental prices will rise over the next year — a slight decrease month over month. The average 12-month rental price expectation fell to 3.6 percent.


Virginia Beach Homes

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RE/MAX Commemorates 42 Years of Real Estate Service

RE/MAX Commemorates 42 Years of Real Estate Service

Today, RE/MAX, LLC marks another year of success by celebrating its 42nd anniversary and honoring its many milestones along the way. Co-founded on Jan. 30, 1973 by Dave and Gail Liniger, RE/MAX has grown from a one-office operation in Denver into a global real estate leader.

“RE/MAX began with an entrepreneurial spirit that is still well-rooted in its agents today. That disposition, along with premier customer service, allows RE/MAX to remain an industry trailblazer,” said Dave Liniger, CEO, Chairman of the Board and Co-Founder of RE/MAX, LLC.

Vice Chair of the Board and Co-Founder Gail Liniger added, “It’s truly inspirational to see what a 40-year-old dream can become when surrounded by such hardworking, passionate business people.”

RE/MAX has many notable accomplishments, further establishing its reputation as the most productive real estate network. In 1997, RE/MAX closed more than 1 million transaction sides in the U.S., becoming the first real estate brand to reach that level of annual production. When the housing market recession hit in 2007, RE/MAX quickly created the industry’s largest sales force of real estate agents with Certified Distressed Property Expert (CDPE) training.

RE/MAX has also earned a number of other industry recognitions. In October, RE/MAX was recognized for the sixth consecutive year as the leading real estate franchise in the 2014 Franchise Times Top 200. The annual survey is based on 2013 worldwide sales and growth. Earlier this month, RE/MAX was named the No. 1 real estate franchise for the 12th time in Entrepreneur magazine’s Franchise 500.

RE/MAX agents out-produced competitors in the RISMedia 26th Annual Power Broker Report, which surveyed the country’s largest brokerages, in July. RE/MAX agents at participating brokerages averaged 18 transaction sides, which is more than double the eight that agents at competing large brokerages averaged.

The anniversary celebration will continue at the RE/MAX R4 annual convention March 2-5, 2015 at Mandalay Bay Hotel and Casino in Las Vegas. More than 5,500 Associates traveling from all over the world are expected to attend the three-day event. Keynote speakers include Mitch Albom, Darren Hardy, Shawn Achor and Peyton Manning.

Hampton Roads Homes