More Than 4 Million First-Time Buyers Want to Enter the Housing Market in 2014, Buoyed by Strong U.S. Housing Confidence

Homeownership Aspirations Among Current Renters Highest in Markets Hard-Hit by Housing Recession, According to Inaugural Zillow Housing Confidence Index

- U.S. Housing Confidence Index currently stands at 63.7.

- If all renters indicating they want to buy a home in the next year actually did, it would represent more than 4.2 million first-time home sales.

- Renters in Miami, Atlanta & Las Vegas expressed the most desire to become homeowners.

- All aspirations unlikely to be realized soon, as homeownership headwinds persist.

SEATTLE, -- Millions of current renters nationwide aspire to buy a home in the next year, according to the inaugural edition of the Zillow Housing Confidence Index (ZHCI)i, suggesting strong demand among potential first-time homebuyers if market conditions are favorable. But existing headwinds, including tight inventory, rising mortgage interest rates and growing affordability problems in a handful of areas, may make it difficult for potential buyers to follow through on those aspirations as the market enters the busy spring home shopping season.

In 19 of the 20 large metro areas surveyed, more than 5 percentii of all residents indicated they wanted to buy a home in the next year. Among current renters, homeownership aspirations were particularly strong, with about 10 percent of all renters nationwide saying they would like to buy within the next 12 months. The vast majority of these respondents also said they were confident or somewhat confident they could afford homeownership nowiii. If all renters that indicated they wanted to buy actually did purchase a home in the next year, it would represent more than 4.2 million first-time home salesiv, more than double the roughly 2.1 million first-time home buyers in 2013.

Homeownership aspirations among current renters were the highest in Miami, Atlanta and Las Vegas, three metro areas that were among the hardest-hit by the housing recession, according to the Zillow Homeownership Aspirations Index (ZHAI), a component of the broader ZHCI.

But despite strong desires to own a home, market conditions remain mixed for potential buyers. While inventory is up nationally compared to a year ago (up 11.1 percent), it still remains well below optimal levels, and has fallen year-over-year in eight of the 20 metro areas surveyed by the ZHCI. Recent data from the Census Bureau also indicates that the share of new homes built as rental units has grown, while the share of new construction dedicated to the kinds of single-family homes likely to be favored by first-time buyers is downv.

Mortgage interest rates are also on the rise, currently standing at about 4.2 percent nationally, according to the Zillow Mortgage Marketplace, well above 2013 lows of roughly 3.3 percent. And as interest rates rise, homes in a number of particularly hot markets, including San Francisco, Los Angeles, San Jose and San Diego, are already looking unaffordable for buyers with lower incomes, especially first-time buyers, as more income is devoted to mortgage payments.

"For the housing market to continue its recovery, it is critical that homes are both available and remain affordable to meet the strong demand these survey results are predicting, particularly from first-time homebuyers," said Zillow® Chief Economist Dr. Stan Humphries. "Even after a wrenching housing recession, this data shows that the dream of homeownership remains very much alive and well, even in those areas that were hardest hit. But these aspirations must also contend with the current reality, and in many areas, conditions remain difficult for buyers. The market is moving toward more balance between buyers and sellers, but it is a slow and uneven process."

The Zillow Housing Confidence Index, sponsored by Zillow, Inc. and developed by Pulsenomics LLC, is measured on a 0 to 100 scale, with readings above 50 indicating positive sentiment. The overall ZHCI for the U.S. stood at 63.7 at the start of the yearvi. Of the 20 metro areas surveyed, 11 had individual confidence levels higher than the U.S. as a whole. The overall U.S. ZHAI among all households, which measures consumers' plans to buy and their attitudes toward the social value of homeownership, stood at 62.4.

"While it is reassuring to see all of the headline ZHCIs in positive territory, the underlying indicators of homeownership aspirations, housing market conditions and expectations for each metro area and tenure segment reveal significant variability," said Pulsenomics Founder Terry Loebs. "Several of these drivers of overall housing confidence registered negative or only marginally positive readings in some cities. These data confirm that real estate recovery and economic healing are relative, local phenomena, and in some instances, likely reflect the lingering psychological impact of the housing bust." 

Metro Area	Overall Housing Confidence Index (all households)	Homeownership Aspirations Index (all renters)	% Current Renters Indicating they plan to buy in 1 year	% All Households Indicating they plan to buy in 1 year	Jan. 2013- Jan. 2014 % Change in Inventory
UNITED STATES	63.7	59.3	10%	8%	11.1%
San Jose	69.4	62.4	9%	7%	-5.9%
Miami	67.5	67.4	18%	14%	7.7%
San Diego	67.2	60.4	12%	8%	-12.3%
Phoenix	66.7	61.1	15%	10%	30.5%
San Francisco	66.4	51.1	5%	7%	-1.8%
Washington, DC	65.8	57.0	9%	6%	14.6%
Dallas	64.4	63.0	12%	9%	-12.3%
Denver	64.4	63.0	15%	8%	-3.8%
Los Angeles	64.4	54.8	6%	6%	0.3%
Seattle	64.2	55.4	10%	8%	12.7%
Las Vegas	64.1	63.4	9%	10%	42.8%
Boston	63.4	58.4	8%	6%	-11.2%
Atlanta	62.9	63.9	14%	7%	10.7%
New York	62.9	61.6	5%	4%	9.0%
Chicago	62.6	59.0	9%	7%	-4.5%
Minneapolis	62.6	53.8	7%	5%	15.0%
Tampa	62.6	58.2	13%	8%	15.4%
Philadelphia	60.8	58.0	8%	7%	5.2%
Detroit	59.4	55.8	9%	8%	-1.8%
St. Louis	58.9	59.6	9%	5%	6.9%

Forecast for Easter: Eclectic Eggs and DIY Design

HGTV Design Couple Share Top Household Trends for Easter

PARK RIDGE, Ill. -- Known for their daring design pairings of high-end modern and flea market finds, HGTV design couple and parents of seven, Robert and Cortney Novogratz, are sharing big and bold trends that will define Easter this year from the latest egg decorating ideas to brightest spring decor.

DIY Egg Decorating"This year, we predict more people are going to be rolling up their sleeves and moving beyond the egg dyeing kit to more eclectic DIY egg designs," says Robert. "We're living in an age where people are constantly looking online to Pinterest and Instagram for new inspiration. It's time to flip the switch, so toss those boring plastic eggs and come up with a unique egg decorating style that suits your Easter taste."

Designer hard-boiled eggs are easy to make, great for displaying and tasty to eat, making them a staple for Easter celebrations. Pick up an extra dozen eggs for hard-boiling and then give these new ideas from the Novogratz a try:  

• Family Portraits: Tape tissue paper onto regular printer paper and print individual family photos or portraits onto it. Cut the photos out and apply them to the outside of eggs using decoupage glue (Modge Podge) or craft glue. Put them in individual egg holders on plates for instant place cards!
  
• That's A Wrap: Thinly coat a piece of bubble packaging with acrylic paint, then roll the egg over the paint. Let the paint dry then repeat with another color, if desired.
  
• Egg Scramble: Create your own egg word scramble by placing number or letter stickers on eggs before dipping then into egg dye. Remove eggs from dye once desired color is achieved, gently removing the stickers from the outside of the egg.

Bring the Outside, In"It has been a long winter, and for a lot of us, it seems like there's no end in sight," says Cortney. "By Easter, we anticipate folks will be ready to bring spring inside their homes by using bright colors, fresh flowers and other well-known symbols of the season like nests and eggs." 

Stay on-trend by using your decorated eggs as inspiration. Blow out some of your egg designs, grab a bare tree branch from outside, place it in a vase and hang your eggs from them. You can also give your table or mantle the pop of color it needs by using your egg designs for virtually no cost. Place them around a quiche plate, use them as individual place cards or layer them in a vase or bowl for added color in the middle of your brunch table.

Make Your Designs Work Harder For You"These days, people want variety, without the expense," says Robert. "Make sure you're getting the most out of your eggs. Don't toss those beautiful eggs you've decorated. If you're not using them as decor, peel your hard-boiled eggs and use them as a blank canvas to create recipes."

Try decorating eggs with pretzels, carrots and cucumbers to make egg dippers, or even kick up a classic egg salad by adding sriracha or curry powder. For more Easter tips, tricks and recipes from the Novogratz, visit us at IncredibleEgg.org and check us out onFacebook page, Twitter, Pinterest and Instagram.

About the American Egg Board (AEB)AEB connects America's egg farmers with consumers, communicates the value of the incredible edible egg™ and receives funding from a national legislative checkoff on all egg production from companies with more than 75,000 hens in the continental United States. The board consists of 18 members and 18 alternates from all regions of the country who are appointed by the Secretary of Agriculture. The AEB staff carries out the programs under the board's direction. AEB is located in Park Ridge, Ill. Visit www.IncredibleEgg.org for more information.