HOME Survey

Housing Opportunities and

Market Experience
June 2018

National Association of REALTORS® Research Group

 Introduction
The Housing Opportunities and Market Experience (HOME) report was created
to monitor consumer sentiment about the housing market. This report covers
core topics that will be tracked on a monthly basis such as views on if now is a
good time to buy or sell a home, the perception of home price changes, perceived
ability to qualify for a mortgage, and the outlook on the U.S. economy.

Additionally, current topical trends are covered in the HOME survey. In Q2 2018,
respondents were asked if a high rate of home ownership strengthens a
community and will homeownership be easier or harder for future generation of
home buyers.

On a monthly basis renters and homeowners are asked about their personal
financial outlook which is indexed on a scale of 0 to 100. Data will be reported
not only on ownership status, but by age, income, and type of geographic location.

Additional topics are examined in depth on

http://economistsoutlook.blogs.realtor.org/ including whether housing as a good
financial investment, whether homeownership is part of the American Dream, and
if renters want to become homeowners.

This HOME survey is released on a quarterly basis.

2018 NAR HOME Survey

 Good Time to Buy a
Home
 In the second quarter of 2018, 68 percent of people believe that now is a good
time to buy a home. Thirty-nine percent believe that strongly, a slight increase
from Q1 2018.
 Only 29 percent of people believe that now is not a good time to buy a home.
 Across all groups surveyed, the majority feel that now is a good time to buy a
home. Not surprisingly with rapid home price acceleration, those who are
currently renting or living with someone else, those who are under 34 years of
age, and those who live in urban areas are less confident that now is a good time
to buy.

Good Time to Buy a Home, Strongly or Moderately

80%
75% 74%
70% 71% 72% 72%
71% 70%
68% 68%

60% 31% 23%

32% 28% 25% 28% 31% 29%
30% 29%

40%

44% 45% 47%

20% 42% 43% 43% 41% 43%
38% 39%

%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2016 2016 2016 2016 2017 2017 2017 2017 2018 2018
Strongly Moderately

2018 NAR HOME Survey

 Good Time to Buy a
Home
Age: 34 or under 35 to 44 45 to 54 55 to 64 65 or over
A Good 52% 62% 69% 77% 81%
Time
Not a Good 48% 38% 31% 23% 19%
Time

Household $50,000 to More than

Income: Under $50,000 $100,000 $100,000
A Good Time 61% 70% 76%

Not a Good Time 39% 30% 24%

Region: Northeast Midwest South West

A Good Time 63% 71% 73% 60%

Not a Good Time 37% 29% 27% 40%

Location: Rural Suburban Urban

A Good Time 70% 70% 62%

Not a Good Time 30% 30% 38%

Tenure: Own Rent Live with someone

A Good Time 78% 49% 52%

Not a Good Time 24% 51% 48%

2018 NAR HOME Survey

 Good Time to Sell a
Home
 Seventy-five percent of people believe that now is a good time to sell a home, an
increase from 61 percent in Q2 2016 and matching the high recorded in Q3 2017.
Forty-six percent believe that strongly in Q2 2018.
 Twenty-nine percent believe that now is not a good time to sell a home.
 Those who are in the West (78 percent) are most likely to think that now is a
good time to sell a home, which is also the least likely region to think that now is a
good time to buy a home.

Now is Good Time To Sell, Strongly or Moderately

80%
75% 74% 75%
69% 71% 71%
63%
61% 62%
60% 30% 29%
56% 29% 28% 32%
30%
26% 27%
40% 29%
28%

42% 45% 43% 42% 46%

20% 37% 39%
32% 35%
28%

%
Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

Strongly Moderately

2018 NAR HOME Survey

 Good Time to Sell a
Home
Age: 34 or under 35 to 44 45 to 54 55 to 64 65 or over
A Good 64% 74% 78% 82% 78%
Time
Not a Good 36% 26% 23% 18% 22%
Time

Household $50,000 to More than

Income: Under $50,000 $100,000 $100,000
A Good Time 61% 81% 85%

Not a Good Time 39% 19% 15%

Region: Northeast Midwest South West

A Good Time 71% 76% 74% 78%

Not a Good Time 29% 24% 26% 22%

Location:
Rural Suburban Urban
A Good Time 72% 79% 73%

Not a Good Time 28% 21% 28%

Tenure: Own Rent Live with someone

A Good Time 81% 67% 58%

Not a Good Time 19% 33% 42%

2018 NAR HOME Survey

 Home Prices in the
Past 12 Months
 Sixty-eight percent of people believe that prices have gone up within their
communities in the last 12 months, which is an increase from Q1 2018 at 63
percent. Twenty-eight percent believe prices have stayed the same and five percent
believe prices have gone down.
 Those who are in the West, those with incomes over $100,000, and those 35 to
44 years in age are most likely to report that prices have increased in their
communities.

Home Prices in the Last 12 Months In Local

Community
100%
7% 7% 6% 6% 6% 5%
11% 11% 9% 10%

80% 30% 30% 28%

33% 33% 31%
36% 34% 35%
39%
60%

40%
63% 64% 68%
60% 63%
50% 56% 55% 60%
53%
20%

0%
Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018

Gone Up Stayed the Same Gone Down

2018 NAR HOME Survey

 Home Prices in the
Past 12 Months
Age: 34 or under 35 to 44 45 to 54 55 to 64 65 or over
Gone Up 65% 73% 67% 67% 67%

Gone 4% 5% 4% 4% 5%
Down
Stayed the 31% 22% 29% 29% 29%
Same

Household $50,000 to More than

Income: Under $50,000 $100,000 $100,000
Gone Up 62% 69% 75%

Gone Down 7% 4% 3%

Stayed the Same 31% 28% 23%

Region: Northeast Midwest South West

Gone Up 58% 63% 66% 82%

Gone Down 8% 6% 4% 2%

Stayed the Same 34% 31% 30% 15%

Location: Rural Suburban Urban

Gone Up 61% 71% 69%

Gone Down 7% 3% 6%

Stayed the Same 33% 26% 25%

Tenure: Own Rent Live with someone

Gone Up 69% 68% 61%

Gone Down 5% 4% 6%

Stayed the Same 27% 27% 33%

2018 NAR HOME Survey

 Home Prices in the
Next Six Months
 Forty percent of respondents believe that prices will stay the same in their
communities in the next six months, which is the lowest percent reported. Fifty-
five percent believe prices will increase in the next six months and five percent
believe prices will go down in the next six months.
 Those who are in the West, in urban areas, and renters are most likely to believe
prices will go up in their communities.

Home Prices in the Next 6 Months In Local Community

100%
9% 8% 9% 9% 8% 7% 7% 6% 6% 5%

80%
41% 42% 40%
42% 41% 43%
47% 48% 47% 47%
60%

40%

52% 53% 51% 53% 55%

51%
20% 44% 45% 44% 44%

0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2016 2016 2016 2016 2017 2017 2017 2017 2018 2018
Will Go Up Stay the Same Will Go Down

2018 NAR HOME Survey

 Home Prices in the
Next Six Months
Age: 34 or under 35 to 44 45 to 54 55 to 64 65 or over
Will Go Up 54% 54% 57% 54% 55%

Will Go 6% 6% 8% 4% 3%
Down
Stay the 40% 40% 35% 42% 42%
Same

Household $50,000 to More than

Income: Under $50,000 $100,000 $100,000
Will Go Up 55% 54% 57%

Will Go Down 6% 5% 4%

Stay the Same 39% 41% 39%

Region: Northeast Midwest South West

Will Go Up 53% 47% 55% 65%

Will Go Down 7% 6% 5% 4%

Stay the Same 40% 48% 40% 31%

Location: Rural Suburban Urban

Will Go Up 50% 57% 58%

Will Go Down 5% 5% 6%

Stay the Same 45% 38% 36%

Tenure: Own Rent Live with someone

Will Go Up 55% 56% 49%

Will Go Down 5% 7% 2%

Stay the Same 40% 37% 49%

2018 NAR HOME Survey

 Qualify for a Mortgage
 Among those who currently do not own a home, 26 percent believe it would be
very difficult (down from 34 percent last quarter) and 28 percent believe it would
be somewhat difficult to qualify for a mortgage given their current financial
situation.
 Seventy-one percent of those who earn under $50,000 believe it would be at least
somewhat difficult to qualify for a mortgage compared to 22 percent of those
earning over $100,000.

With Household’s Current Financial Situation, Non-

Owners’ Perceived Difficulty Qualifying for a Mortgage

100%
14% 16% 15% 16% 17% 20% 20%
21% 19% 21%

80%
23% 20%
25% 23% 23% 19% 21% 17%
23% 25%
60%

36% 30%
33% 30% 31% 30% 31% 28%
40% 29% 28%

20%
30% 30% 30% 31% 31% 32% 34%
29% 27% 26%

0%
Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018
Very Difficult Somewhat Difficult Not Very Difficult Not At All Difficult
2018 NAR HOME Survey
 Qualify for a Mortgage
Age: 34 or under 35 to 44 45 to 54 55 to 64 65 or over
Very Difficult 23% 18% 34% 35% 32%

Somewhat Difficult 26% 36% 30% 24% 32%

Not Very Difficult 28% 25% 15% 20% 17%

Not At All Difficult 23% 21% 22% 22% 19%

Household $50,000 to More than

Income: Under $50,000 $100,000 $100,000
Very Difficult 39% 11% 6%

Somewhat Difficult 32% 26% 16%

Not Very Difficult 18% 31% 33%

Not At All Difficult 11% 32% 45%

Region: Northeast Midwest South West

Very Difficult 27% 31% 22% 26%

Somewhat Difficult 23% 16% 36% 31%

Not Very Difficult 24% 29% 22% 26%

Not At All Difficult 27% 24% 20% 17%

Location: Rural Suburban Urban

Very Difficult 29% 24% 26%

Somewhat Difficult 22% 30% 28%

Not Very Difficult 24% 29% 20%

Not At All Difficult 25% 17% 25%

Tenure: Rent Live with someone

Very Difficult 23% 32%

Somewhat Difficult 28% 30%

Not Very Difficult 26% 21%

Not At All Difficult 23% 16%

2018 NAR HOME Survey

 Outlook on
U.S. Economy
 Fifty-eight percent of people believe the U.S. economy is improving, down from 60
percent in Q4 2017.
 Optimism is highest in the South, among those who live with someone, and those
who make $100,000 or more.
 Fifty-six percent of those 34 years of age or younger believe the economy is
improving.
 Fifty-one percent of those in urban areas believe the economy is improving
compared to sixty-three percent in rural areas.

Outlook on the U.S. Economy

100%

80% 38% 40% 42%

46% 46% 47% 48%
52% 51%
52%

60%

40%

62% 60% 58%

54% 54% 53% 52%
48% 49%
20% 48%

0%
Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018
Improving Not Improving

2018 NAR HOME Survey

 Outlook on
U.S. Economy
Age: 34 or under 35 to 44 45 to 54 55 to 64 65 or over
Improving 56% 57% 60% 61% 59%
Not Improving 44% 43% 40% 39% 42%

Household
Income: Under $50,000 $50,000 to $100,000 More than $100,000
Improving 48% 60% 69%

Not Improving 52% 40% 31%

Region: Northeast Midwest South West

Improving 55% 59% 60% 55%

Not Improving 45% 41% 40% 45%

Location: Rural Suburban Urban

Improving 63% 59% 51%

Not Improving 37% 41% 49%

Tenure: Own Rent Live with someone

Improving 62% 48% 65%

Not Improving 39% 52% 36%

2018 NAR HOME Survey

 Homeownership Strengthening
Communities
 In Q2 2018, respondents were asked if a high rate of homeownership
strengthens a community and if homeownership will be easier or harder to
attain for future generations of home buyers.
 Sixty-seven percent of respondents believe that homeownership strengthens a
community a great deal. Over three-fourths of respondents who own their
own home, earn over $100,000 a year, and are 55 and older feel that
homeownership strengthens a community a great deal.

Homeownership Strengthening Community

Not sure
1%

Not really
10%

Somewhat
22%

Great deal
67%

2018 NAR HOME Survey

 Homeownership
Strengthening Communities

$50,000 to
Household Income: Under $50,000 $100,000 More than $100,000
Great deal 58% 71% 75%

Somewhat 27% 19% 20%

Not really 14% 9% 5%

Not sure 2% 1% *

Tenure: Own Rent Live with someone

Great deal 76% 50% 46%

Somewhat 26% 36% 23%

Not really 16% 2% 2%

Not sure 6% 4% 8%

Age: 34 or under 35 to 44 45 to 54 55 to 64 65 or over

Great deal 51% 62% 71% 76% 77%

Somewhat 34% 24% 19% 16% 16%

Not really 13% 13% 8% 8% 5%

Not sure 2% 1% 1% * 2%

2018 NAR HOME Survey

 Future Generations
Becoming Homeowners
 Seventy-three percent of respondents believe attaining homeownership will be
harder for future generations of home buyers. In comparison, only 11% think it
will easier and 13% believe there will be no change.
 Among those 34 years or younger, 74 percent believe it will be harder to own
a home for future generations of home buyers.

Future Generations Becoming Homeowners

Not sure Much easier
3% 3%

Somewhat
easier
8%

No difference
13%
Much harder
37%

Somewhat harder
36%

2018 NAR HOME Survey

 Future Generations
Becoming Homeowners
Age: 34 or under 35 to 44 45 to 54 55 to 64 65 or over
Much easier 4% 2% 3% 3% 3%

Somewhat 10% 8% 8% 6% 8%
easier
No difference 9% 14% 14% 13% 11%

Somewhat 40% 32% 37% 35% 42%

harder
Much harder 34% 42% 36% 39% 33%

Not sure 1% 3% 2% 3% 4%

$50,000 to
Household Income: Under $50,000 $100,000 More than $100,000
Much easier 4% 2% 3%

Somewhat easier 11% 7% 6%

No difference 11% 14% 13%

Somewhat harder 32% 40% 37%

Much harder 39% 34% 39%

Not sure 3% 3% 1%

Age: Rural Urban Suburban

Much easier 3% 3% 4%

Somewhat easier 7% 8% 7%

No difference 14% 14% 10%

Somewhat harder 39% 37% 33%

Much harder 33% 35% 43%

Not sure 4% 3% 2%

2018 NAR HOME Survey

 Personal Financial
Outlook Index
Index ranges between 0 and 100: 0 = all respondents believe their personal
financial situation will be worse in 6 months; 50 = all respondents believe their
personal financial situation will be about the same in 6 months; 100 = all
respondents believe their personal situation will be better in 6 months.

Personal Financial Outlook by Tenure

75

70

64
65
62.1
60 61.2

55

50

All U.S. Households Own Rent

Personal Financial Outlook by Age of Household Head

80

70 67.2
62.1
62.1
60
62

53.2
50

40

All U.S. Households 18-24 25-44 45-64 65+

2018 NAR HOME Survey

 Personal Financial
Outlook Index
Index ranges between 0 and 100: 0 = all respondents believe their personal
financial situation will be worse in 6 months; 50 = all respondents believe their
personal financial situation will be about the same in 6 months; 100 = all
respondents believe their personal situation will be better in 6 months.

Personal Financial Outlook by Income

75

70
67.4

65
65.7
62.1
60

55
54.5
54
50

45

All U.S. Households Under 30K 30K-50K 50-75K 75K+

Personal Financial Outlook by Area

75

70

65 63.9
62.1
60 61
59.6
55

50

45

All U.S. Households Urban Suburban Rural

2018 NAR HOME Survey

 Methodology
The survey was conducted by an established survey research firm, TechnoMetrica
Market Intelligence. Each month, April through June 2018, a sample of U.S.
households was surveyed via random-digit dial, including cell phones and land
lines. Using a computer-assisted telephone interviewing (CATI) system,
TechnoMetrica conducts interviews from their call center in Ramsey, NJ.

Regional quotas are used, based on four census regions and nine census divisions.

Each month approximately 900 qualified households responded to the survey.

The data compiled for this report and is based on 2,703 completed telephone
interviews. For monthly results, the margin of error for the survey is +/-3.3
percentage points at the 95% confidence level.

©2018 National Association of REALTORS®

All Rights Reserved.
May not be reprinted in whole or in part without permission of the
National Association of REALTORS®.
For reprint information, contact data@realtors.org.

2018 NAR HOME Survey

 The National Association of REALTORS®, “The Voice for Real Estate,”
is America’s largest trade association, representing 1.3 million members, including
NAR’s institutes, societies and councils, involved in all aspects of the real estate
industry. NAR membership includes brokers, salespeople, property managers,
appraisers, counselors and others engaged in both residential and commercial
real estate.

The term REALTOR® is a registered collective membership mark that identifies a

real estate professional who is a member of the National Association of REALTORS®
and subscribes to its strict Code of Ethics.

Working for America’s property owners, the National Association provides a facility for
professional development, research and exchange of information among its members
and to the public and government for the purpose of preserving the free enterprise
system and the right to own real property.

NATIONAL ASSOCIATION OF REALTORS®

RESEARCH GROUP
The Mission of the National Association of REALTORS® Research Group is to collect
and disseminate timely, accurate and comprehensive real estate data and to conduct
economic analysis in order to inform and engage members, consumers, and policymakers
and the media in a professional and accessible manner.

To find out about other products from NAR’s Research Group, visit
https://www.nar.realtor/research-and-statistics.

NATIONAL ASSOCIATION OF REALTORS®

Research Group
500 New Jersey Avenue, NW
Washington, DC 20001
202-383-1000
data@realtors.org

2018 NAR HOME Survey