HOUSING CONFIDENCE...

REAL ESTATE TOPICS

HOUSING CONFIDENCE BUOYED BY OPTIMISM AMONG MILLENNIALSOverall, Americans are more confident in the housing market than at the start of the year, buoyed by optimism among millennials but with tempered expectations in general for future market performance, according to the latest Zillow Housing Confidence Index (ZHCI). The ZHCI rose to 64.2 over the summer, up from 63.7 in January, and housing confidence increased among residents of 11 of the 20 major metro areas surveyed.

 

The ZHCI is measured on a 0 to 100 scale, with readings above 50 indicating positive sentiment. The Housing Market Conditions Index,
which measures prevailing market trends and buying/selling conditions, and the Homeownership Aspirations Index, which measures household homebuying plans and attitudes toward the social value of homeownership, rose to 62.1 and 62.7, respectively. The Housing Expectations Index, which measures expected changes in home values, home affordability, and the value of homeownership, fell to 66.1 from 66.3 in January.

 

The survey also revealed that younger renters are upbeat about their future homebuying prospects. Among millennial renters (aged 18-34), 82 percent said they were confident or somewhat confident that they will be able to afford to own a home someday, compared to 64 percent of Generation X renters (those aged 35-49), and just 48 percent of Baby Boomer renters (aged 50-64). Millennials overall were also far more optimistic about future home value appreciation. One-third of millennials (33 percent) said they expected home values to rise more than 6 percent per year over the next decade, compared to 21 percent of Generation X and just 15 percent of Baby Boomers.

Interested in becoming a Califorina Real Estate Agent? Click logo for more information.