Homeowners seem to view renting in a better light
By MarketWatch
Last Update: 2:30 PM ET Jun 8, 2007
Homeowners seem to view renting in a better light than they have in the past, according to a recent survey commissioned by the National Apartment Association.
Sixty-five percent of those surveyed said that given the current state of the
real estate market there are advantages to renting as opposed to owning.
Twenty-five percent said that having no susceptibility to foreclosure was a
reason to rent, 23% said not having to worry about fluctuating interest rates
was a perk and 23% also said not being impacted by an unpredictable real
estate resale market was a benefit of renting.
"This survey reflects a notable contrast to what we traditionally see,"
Douglas Culkin, president of the National Apartment Association, said in a
news release.
"In the past, people ... have generally seen renting an apartment as a
stepping stone to homeownership. That phenomenon has by no means disappeared,
but, across the nation, we're seeing more and more consumers opting to rent
instead of own."
Interestingly, 54% of homeowners said that the inability to build equity while
renting was a concern about apartment living, while 62% said the lack of
privacy was a concern.
Certainly, playing it safe seems to be a theme these days, from lenders
tightening standards to more borrowers opting for fixed-rate over
adjustable-rate loans. Read more about those trends in this week's real estate
pages, and also read about a consumer advocacy group's analysis on what
consumers really know about the real estate industry. (Hint: It isn't much.)
As in many issues regarding real estate, the attitudes about renting are
cyclical, Culkin said.
But this time around, some homeowners are "born-again renters" as they lose or
are at risk of losing their homes to foreclosure, he pointed out. And
qualifying as creditworthy renters after a history of delinquencies is a
challenge all its own.
Few consumers really know
real estate
Few consumers understand fundamentals of the real estate industry and don't
know that they can negotiate better prices for basic services, according to an
analysis released Monday from a consumer advocacy group.
Home insurance policies don't cover much: report
Home insurance policies don't cover much and homeowners should watch out
because they could be left with big bills, according to a report released
Monday by the National Association of Insurance Commissioners.
As lenders tighten standards, borrowers seek fixed-rate safety
Defaults in subprime mortgages have led some lenders to adopt stricter
standards in approving loans, imposing more discipline on borrowers and the
lending industry alike. But the biggest shift in mortgage trends has come from
consumers themselves, who have been fleeing to the relative safety of
fixed-rate loans over the last 15 months.
'Small' book on architecture makes a big impression
Sarah Susanka is arguably the most thought-provoking residential architect in
her generation. Her book, "The Not So Big House: A Blueprint for the Way We
Really Live" (Taunton, 2001), which questioned the then-accepted dogma that a
bigger home is necessarily a better one, became an instant best-seller. I'd
like to say that all this attention and publishing success has made Ms.
Susanka the most influential architect in her generation, but I don't think
that's the case. Despite the fact that 80 million baby boomers are looking, or
soon will be looking, to downsize -- and 76 million echo boomers are just
starting to become first-time buyers -- the reality is few
small-but-well-crafted homes are being built in the suburbs. See House Talk.
War memorial sparks real estate debate
Like many San Francisco Bay Area residents, Shelly Valerio is against the
continued conflict in Iraq. But when a local, Jeff Heaton , late last year
planted dozens of three-foot-high crosses on a hillside to commemorate U.S.
soldiers who have died in Iraq, Valerio -- and many of Lafayette's 24,000
other residents -- objected. The reason for her stance: She had planned to
sell her four-bedroom house, which she bought in 1998 for $469,000, before the
war memorial appeared. But she put her plans on hold after the crosses popped
up and real-estate agents told her the property would fetch much less than her
planned asking price of nearly $1 million.
U.S. mortgage rates hit 10-month highs
Mortgage rates reached 10-month highs this week, responding to market concerns
of a tight labor force and wage growth, Freddie Mac's chief economist said
Thursday. See Mortgages.
As insurers flee coasts, states face new threat
As hurricane season gets under way, a dramatic shift in the way homeowners
insure against disasters could pose a big financial risk in several coastal
states.
Tactics for creating 'house lust'
As sales lag, home builders are pulling out the stops to woo buyers and
"create house lust," according to an article by the Washington Post. Home
models lost their importance during the housing boom, but now that consumers
are less apt to buy, builders are turning to them again as marketing tools and
are investing dollars to beautify kitchens, dining rooms and family rooms and
even showcase finished basements with sports bars, pool tables or exercise
rooms, the Post says.
Tax status of mortgage insurance alters loan math
As of Jan. 1, private mortgage insurance is tax deductible. This is something
worth mentioning in your next PMI article for your readers. See Realty Q&A.
Homeowners need more bracing for disaster
As natural disasters threaten to drive up property losses in many parts of the
country, insurers increasingly are requiring homeowners to better protect
their houses as a condition of staying insured.
See full story.
