Long Island NY economy and home value confidence seems to be on the rise, according to Fannie Mae's April National Housing Survey.
Americans continue to expect home prices to go up, with the projection averaging 1.3 percent over the next 12 months, the highest value recorded.
A high percentage (71%) of Americans still say it is a good time to buy while the percentage (15%) who said it is a good time to sell was up 1 point from March.
Doug Duncan, Fannie Mae's chief economist, says "consumer views of housing market conditions have become more supportive of home purchases, and sustained healthy hiring is required to help realize these improved expectations."
Long Island NY Economy Appears to be Increasing
The percentage of Americans who believe the economy is on the right track rose to 37 percent, a 2 point increase from the previous month and the highest level in the survey's two-year history. Still, an even greater 56 percent believe the economy is moving in the wrong direction.
Also, 23 percent of Americans reported their household income is significantly higher than it was a year ago, while 36 percent said their household expenses are significantly higher since the same time period. Both categories rose 2 percentage points compared to March.
The expectation for average rental prices decreased slightly to 3.6 percent; in March, respondents expected rent to go up by 4.1 percent over the next 12 months.
If respondents were to move, 32 percent said say they would rent while 64 percent said they would buy. The percentage of those who said they would rent increased 2 points and reached the highest level since November 2011.
With the Long Island NY economy and home value confidence apparently increasing, would you say things are on the right track, or moving in the wrong direction? We'd love to hear your thoughts.
Mortgages are netting households the biggest cost savings relative to rent in at least 20 years in Long Island NY. And with home prices as low as they may ever be again, now may be the ideal time for would-be home buyers to consider throwing in the towel on rent, and take advantage of all the home ownership perks afforded by owning vs. renting.
Mortgages Higher Than Rent Since 1991
According to data compiled by Deutsche Bank from the National Association of Realtors and the REIS Inc. information service, those with home loans are benefiting from mortgages costing 0.8 percentage points less in last year's fourth quarter after being about the same as rents during the first three quarters. Mortgages have been 3.1 points higher on average since 1991.
Analysts John Perry and Nishu Sood noted in their report that falling home prices and still-rising rents accounted for the fourth-quarter gap. The median price of a single-family house fell 5.8 percent in the quarter, while rent payments rose 0.5 percent on average.
Rents averaged 14.9 percent more than mortgages during the last three months of 2011. The gap widened from the third quarter by 8.1 points, and rentals were more costly for the fifth consecutive quarter.
The differential points toward a rebound in homebuilding and a slowing of rent increases.
If you've been renting, with Long Island NY mortgages being at or below record low rates, now may be the time for you to make the move and buy a home. We'd be happy to discuss the market with you, and talk to you about whether now would be the best time for you or not. Just contact us for a no-obligation consultation.
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Long Island NY home prices rose for the first time in 10 months, according to the 
S&P/Case Shiller composite index released recently, an encouraging sign the battered housing sector is starting to stabilize.
It was the first time home prices have gained since April 2011. That gain was itself an anomaly in a string of declines stretching back to May 2010.
Long Island NY Home Prices Likely to Remain Weak
Yale economics professor Robert Shiller, the co-creator of the Standard & Poor's/Case-Shiller home price index, believes the Long Island NY housing market is likely to remain weak and may take a generation or more to rebound.
Shiller, the co-creator of the Standard & Poor's/Case-Shiller home price index, told Reuters Insider a weak labor market, high gas prices and a general sense of unease among consumers was outweighing low mortgage rates and would likely keep a lid on home prices for the foreseeable future.
David Blitzer, chairman of the index committee at Standard & Poor's, cautioned that while there were some pieces of good news in the report, some areas saw home prices still continuing their decline.
The S&P/Case Shiller composite index of 20 metropolitan areas gained 0.2 percent in February on a seasonally adjusted basis, matching economists' forecasts. Seven of the cities saw home prices drop on a seasonally adjusted basis, while home prices in two cities were unchanged. On an unadjusted basis, 16 of the areas slumped further.
Home prices in the 20 cities fell 3.5 percent year over year, moderating from the previous month's decline of 3.8 percent.
"Looking forward, we think homes sales will continue to trend upward, which ultimately will result in a slower rate of home value depreciation," said Stan Humphries, chief economist at Zillow. "But any housing recovery will be dependent on job growth. Continued progress in this area is essential to keeping the housing recovery, such as it is, on track."
A Long Island NY mortgage is more difficult to get these days than ever, but there are some things home buyers tend to do that delay, or even kill a deal.
This seems to be especially true during the time after signing a contract, and waiting for the home to close.
6 Things To Never Do When Trying to Obtain a Long Island NY Mortgage
- Don't make any large purchases like a new car or a bunch of new furniture for your newly purchased home. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher ratios. Higher ratios make for riskier loans, and sometimes qualified borrowers no longer qualify.
- Don't apply for new credit. It doesn't matter whether it's a new credit card or a new car, when you have your credit report run by organizations in multiple financial channels (mortgages, credit cards, autos, etc.), your FICO score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.
- Don't deposit unusual cash into your bank accounts. By "unusual cash", we mean, cash you would not normally come into, like money your parents gave you to help with the down payment. Lenders need to source your money and cash is not really traceable. Small, explainable deposits are fine, but getting $10,000 from your parents as a gift is not. Discuss the proper way to track your assets with your loan officer.
- Don't co-sign any loans for anyone. When you co-sign, you are obligated. With that obligation comes higher ratios on your credit as well. Even if you swear you won't be making the payments, the lender will be counting the payment against you.
- Don't change banks or bank accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is a consistency of accounts. Before you even transfer money between accounts, talk to your loan officer to make sure it won't affect your mortgage application.
- Don't close any credit accounts. Many people erroneously believe that having less available credit makes them less risky and more approvable. Wrong! A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both those determinants of your FICO score.
The best advice we can give home buyers when applying for a Long Island NY mortgage is to fully disclose and discuss your plans with your loan officer or mortgage broker. The smallest little blip on your credit report could cause you to lose the house you're waiting to close on! Wait until after you've closed on your new home before doing anything that could adversely affect your credit score or credit report.
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