If you have been thinking more seriously about investing in Jacksonville property lately, you are not alone. In Florida and around the country, people are gaining confidence in the economy and the housing market. A recent survey by Fannie Mae shows that although still cautious in taking on new financial responsibilities, many Americans view real estate as a wise investment.
Investing in Jacksonville residential real estate may be the ideal option for you if you are hesitant to trust stocks or other investments. Associates at Traditions Realty are here to be your partners in everything having to do with Jacksonville real estate. Whether you are considering investing in Jacksonville property, looking to put your new investment up for rent or seeking homes to rent in Jacksonville, get in touch with Traditions to make the process a pleasant one. Read more below.
Housing survey: Uptick in consumer attitudes
WASHINGTON – May 11, 2011 – Fannie Mae’s latest national housing survey finds that Americans expressed more cautious optimism during the first quarter of 2011 than in the fourth quarter of 2010, but they continue to lack confidence in the overall strength of the housing market and economic recovery.
The First Quarter 2011 Fannie Mae National Housing Survey polled homeowners and renters between January 2011 and March 2011. Findings were compared to similar surveys conducted throughout 2010 and December 2003.
The survey found that Americans’ newfound optimism about home prices, the economy and personal finances is balanced by concerns about rising household expenses.
Despite consumer caution, however, 57 percent of Americans still believe that buying a home has a lot of potential as an investment, and rank homeownership higher than other investments, such as buying stocks and putting money into an IRA or 401(k) plan.
“Uncertainty regarding the improving labor market, expectations of little home price and interest rate movement, and rising household expenses has left consumers feeling less financially secure and translates into weak mortgage demand,” says Doug Duncan, vice president and chief economist of Fannie Mae. “While we have seen indications of improving economic activity in recent months – especially the strengthening of private sector employment – consumers’ attitudes improved only marginally, and in some areas not at all, from a year ago, reflecting the continued unevenness and uncertainty of this recovery.”
• 33% of Americans believe the economy is on the right track, up four percentage points from the fourth quarter of 2010 but virtually unchanged from January 2010 (31%).
• 42% of respondents expect their personal finances to improve over the next year (up by 2 percentage points from the fourth quarter of 2010), compared with 44% in January 2010.
• 40% say that current monthly household expenses are significantly higher than twelve months ago, up from 34% in the previous quarter and 31% in January 2010.
• While the number of Americans who perceive homeownership as a safe investment has been declining (from 83% in 2003 to 66% in first quarter of 2011), 57% still believe that buying a home has a lot of potential as an investment.
• Nearly twice as many underwater borrowers (27%) think it’s okay to walk away from a mortgage if they face financial distress than in January 2010.
• 44% of homeowners believe that the value of their home today is worth 20% or more than what they originally paid for it, declining from 46% in June 2010 and 51% in January 2010.
• 30% expect home prices to strengthen over the next year, up four percentage points from the fourth quarter of 2010 but virtually unchanged from a year ago.
• 59% of Generation Y Americans (ages 18-34) expect their personal financial situation to improve over the next year, compared to 49% among Generation X (ages 35-44) and 37% among baby boomers (ages 45-64).
• Fewer African-Americans think the economy is on the right track (44% in the first quarter of 2011 versus 51% in the previous quarter), and they are less optimistic about their personal finances (61% expect their finances to get better over the next year compared to 67% in the fourth quarter of 2010).
• Only 13% of adults age 65-plus think it will be easier for the next generation to purchase a home than it was for them, compared with 28% of Generation Y Americans.
• Nearly one in four (23%) mortgage borrowers say they are underwater, compared with 30% in January 2010.
• Only 31% of underwater borrowers think they have sufficient savings (compared to 42% in June 2010, and 43% of all mortgage borrowers).
• 46% of underwater borrowers say they are stressed about their ability to make payments on their debt (versus 35% in June 2010, and 33% of all mortgage borrowers).
© 2011 Florida Realtors®