Things Are Heating Up In The Kitchen And The Bedroom For Today's Homebuyers

Homebuyers Willing to Make Compromises for Must-Have Features

ATLANTA, -- Today's homebuyers are seeking surprising key features, and they are willing to make sacrifices to get them, according to the latest PulteGroup Home Index Survey (PGHI) by PulteGroup, Inc. (NYSE: PHM), one of the nation's largest homebuilders. 

The kitchen was the most important area when choosing a new home, according to 29 percent of Americans.  Following closely behind the kitchen wasn't the bathroom as most would suspect – but another priority – the bedroom.  The master bedroom ranked as the second most important room in a new home at 22 percent.  And the living room surprisingly was cited as the third most influential in their decision-making at 18 percent. 

"As consumer confidence improves and the appetite for homebuying increases, consumers today aren't just looking for the biggest house on the block.  They're looking for more efficient use of space and a greater area allocated to 'workhorse' spaces, like the kitchen," said Ryan Marshall, executive vice president of homebuilding operations, marketing and sales for PulteGroup, Inc.  "Homebuyers want unique features and amenities and will do what it takes to find the home they truly want, even if they have to pay more for a move-in ready home."

MAKING COMPROMISES

According to the 2014 PGHI, nearly half of adults (44 percent) are willing to give up a location near public transportation in exchange for must-have features in their next home.  Further, more than one-third of respondents (35 percent) said they would give up better schools and proximity to entertainment and shopping (34 percent) for their desired in-home amenities.

INFLUENTIAL HOME FEATURES

More than half (51 percent) of adults surveyed indicated that they want their next home to be larger than their current residence and 64 percent preferred their next home be move-in ready.  Consistent with the desire for more space, critical features homebuyers are seeking include:

• "His-and-her closets" ranked highest among master bedroom features (31 percent), followed by spa-like master bathrooms (23 percent)
• A large eat-in area was the most preferred feature in the kitchen (23 percent), followed by a kitchen island (22 percent)
• At least one bathtub in the home was the most sought after bathroom feature, desired by more than half of respondents (54 percent)

"In addition to the more common home options, we're starting to see regional trends emerging among homebuyer preferences," said Marshall.  "From outdoor kitchens in Florida, to spice kitchens in California, shoppers are increasingly discerning when it comes to home features that could be the deciding factor in their next move."

Regional trends identified by PulteGroup include folding, accordion-style glass doors in the Southwest, multi-generation floor plans and screened-in porches in the Southeast, balconies off the kitchen and rooftop terraces in the Northeast, and "Jack n' Jill" bedrooms and coffee bars in the Midwest.

Americans' Attitudes Toward the Housing Market Reflect Steady but Slow Recovery, "Normal" Housing Levels Still a Ways Off

WASHINGTON - Consumer confidence in the housing market has trended upward significantly during the recovery but continues to be less than needed to return to "normal" housing levels, according to results from Fannie Mae's June 2014National Housing Survey. On average, consumers' 12-month home price change expectation remained in positive territory in June at 2.4 percent but dipped slightly from the previous few months, likely in response to a lackluster housing picture in the first half of the year. Additionally, the share of respondents who expect mortgage rates to go up in the next year increased six percentage points to 55 percent in June following a gradual decrease since February. While consumers appear positive overall and are trending in that direction, some survey and market indicators reflect a more subdued housing market, underscoring that the recovery continues but is not yet robust.

"Since we began collecting monthly National Housing Survey data in June 2010, we've seen substantial progress in consumer home price expectations and other key attitudinal measures as the housing recovery gained its footing," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "Still, we do not expect to see 'normal' levels of new residential construction, in the region of 1.6 million new housing units per year, before the end of 2016, our original projection. Such a feat would require a pace of growth in housing starts not seen in decades."

"The uptick this month in the share of consumers expecting mortgage rates to go up and the accompanying decline in home price expectations reflect the pause of activity in the housing market so far this year," said Duncan. "Despite recent improvement, we now expect an annual decline in existing home sales due to weak volume in the first four months of the year associated with the rise in mortgage rates mid-last year and the current dearth of supply of lower-priced homes. On the bright side, the share of employed consumers who expressed concerns about losing their job dropped to an all-time survey low in June, consistent with last week's upbeat jobs report. This may encourage potential homebuyers to enter the purchase market in 2014, helping to offset some of the weakness in sales activity."

SURVEY HIGHLIGHTS

Homeownership and Renting

• The average 12-month home price change expectation fell to 2.4 percent.
• The share of respondents who say home prices will go up in the next 12 months fell to 46 percent, and the share who say home prices will go down increased to 10 percent.
• The share of respondents who say mortgage rates will go up in the next 12 months increased six percentage points to 55 percent.
• Those who say it is a good time to buy a house rose to 70 percent, and those who say it is a good time to sell a house fell to 40 percent.
• The average 12-month rental price change expectation increased to 4.3 percent.
• The percentage of respondents who expect home rental prices to go up increased to 54 percent.
• Fifty-two percent of respondents thought it would be easy for them to get a home mortgage today—matching the all-time high.
• The share who say they would buy if they were going to move increased slightly to 68 percent.

The Economy and Household Finances

• The share of respondents who say the economy is on the wrong track fell by 3 percentage points from last month to 54 percent.
• The percentage of respondents who expect their personal financial situation to get better over the next 12 months ticked up to 43 percent.
• The share of respondents who say their household income is significantly lower than it was 12 months ago decreased 1 percentage point to 11 percent—a new all-time low.
• The share of respondents who say their household expenses are significantly higher than they were 12 months ago rose 4 percentage points to 38 percent.

The most detailed consumer attitudinal survey of its kind, the Fannie Mae National Housing Survey polled 1,000 Americans via live telephone interview to assess their attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future.

Home Field Advantage: Brandon Belt, San Francisco Giants

San Francisco Giants first baseman shares what home means to him in this edition of Coldwell Banker Home Field Advantage.

WASHINGTON, July 7, 2014 /PRNewswire/ -- Consumer confidence in the housing market has trended upward significantly during the recovery but continues to be less than needed to return to "normal" housing levels, according to results from Fannie Mae's June 2014 National Housing Survey. On average, consumers' 12-month home price change expectation remained in positive territory in June at 2.4 percent but dipped slightly from the previous few months, likely in response to a lackluster housing picture in the first half of the year. Additionally, the share of respondents who expect mortgage rates to go up in the next year increased six percentage points to 55 percent in June following a gradual decrease since February. While consumers appear positive overall and are trending in that direction, some survey and market indicators reflect a more subdued housing market, underscoring that the recovery continues but is not yet robust. "Since we began collecting monthly National Housing Survey data in June 2010, we've seen substantial progress in consumer home price expectations and other key attitudinal measures as the housing recovery gained its footing," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "Still, we do not expect to see 'normal' levels of new residential construction, in the region of 1.6 million new housing units per year, before the end of 2016, our original projection. Such a feat would require a pace of growth in housing starts not seen in decades." "The uptick this month in the share of consumers expecting mortgage rates to go up and the accompanying decline in home price expectations reflect the pause of activity in the housing market so far this year," said Duncan. "Despite recent improvement, we now expect an annual decline in existing home sales due to weak volume in the first four months of the year associated with the rise in mortgage rates mid-last year and the current dearth of supply of lower-priced homes. On the bright side, the share of employed consumers who expressed concerns about losing their job dropped to an all-time survey low in June, consistent with last week's upbeat jobs report. This may encourage potential homebuyers to enter the purchase market in 2014, helping to offset some of the weakness in sales activity." SURVEY HIGHLIGHTS Homeownership and Renting The average 12-month home price change expectation fell to 2.4 percent. The share of respondents who say home prices will go up in the next 12 months fell to 46 percent, and the share who say home prices will go down increased to 10 percent. The share of respondents who say mortgage rates will go up in the next 12 months increased six percentage points to 55 percent. Those who say it is a good time to buy a house rose to 70 percent, and those who say it is a good time to sell a house fell to 40 percent. The average 12-month rental price change expectation increased to 4.3 percent. The percentage of respondents who expect home rental prices to go up increased to 54 percent. Fifty-two percent of respondents thought it would be easy for them to get a home mortgage today—matching the all-time high. The share who say they would buy if they were going to move increased slightly to 68 percent. The Economy and Household Finances The share of respondents who say the economy is on the wrong track fell by 3 percentage points from last month to 54 percent. The percentage of respondents who expect their personal financial situation to get better over the next 12 months ticked up to 43 percent. The share of respondents who say their household income is significantly lower than it was 12 months ago decreased 1 percentage point to 11 percent—a new all-time low. The share of respondents who say their household expenses are significantly higher than they were 12 months ago rose 4 percentage points to 38 percent. The most detailed consumer attitudinal survey of its kind, the Fannie Mae National Housing Survey polled 1,000 Americans via live telephone interview to assess their attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future.

SAN JOSE, Calif.-- Nationally, home prices continue to climb – indicating a more comprehensive, generalized real estate recovery than a year ago, according to the May 2014 National Housing Trend Report released today byrealtor.com®, the leader in providing consumers the most accurate U.S. residential listings online.* Move, Inc. (NASDAQ: MOVE) operates realtor.com®.

May's housing report shows all but eight of 146 markets reporting year-over-year price increases. This May's housing market stands in significant contrast to last year in which price increases were less generalized and more concentrated in specific metropolitan areas. This broad increase in price suggests a more evenly distributed recovery and a healthier national housing market. 

The median listing price of homes in May 2014 rose 8 percent over last year to $214,900, according to realtor.com®. Median age of inventory is 78 days – the same as it was during the localized inventory shortages experienced last year. May home inventories are down 5.8 percent compared with a year ago.

An important metric – median age of housing inventory – is identical for this May and last May, as consumer demand continues to move homes in 2014 as quickly as last year.

"Home prices are as high as they are because of the low inventory spread across the nation," said Steve Berkowitz, Move's chief executive officer. "But we are not seeing the runaway pricing of last year. Nor is the situation exclusive to the hotbed markets of recent years."

National Key Market Indicators for May 2014

	May 2014	Year-over-Year Percentage Change	Month-over-Month Percentage Change
Number of Listings	1,743,065	-5.8%	-0.4%
Median Age of Inventory	78	0.0%	-4.9%
Median List Price	$214,900	8.0%	2.4%

10 Metropolitan Statistical Areas (MSAs) with the Greatest Median List Price Increases, Year over Year

MSA	Median Listing Price	% YY	Total Listings	% YY
Stockton-Lodi, CA	$285,000	42.7%	1,291	-38.0%
Las Vegas, NV-AZ(NV)	$186,085	24.1%	12,564	-28.0%
Houston, TX	$245,000	23.1%	16,687	-32.0%
Reno, NV	$289,900	22.9%	2,377	3.0%
Denver, CO	$349,900	20.7%	5,930	-20.0%
Riverside-San Bernardino, CA	$309,900	19.7%	18,010	20.0%
West-AZ-RSA	$328,950	19.6%	2,312	16.0%
Sacramento, CA	$340,000	19.3%	6,110	-27.0%
Boulder-Longmont, CO	$465,000	19.3%	1,569	-34.0%
San Diego, CA	$500,250	17.7%	6,571	-15.0%

Locally, inventory shortages have not reached the levels of a year ago. In May 2014, only three markets – Stockton-Lodi, California;Boulder-Longmont, Colorado; and Houston, Texas – reported year-over-year inventory declines in excess of 29 percent. By contrast, nine markets had inventory deficits of 29 percent or more in May 2013.

Realtor.com® Reveals Most Popular Cities for Renters on the Go

SAN JOSE, Calif. -- Realtor.com®, the leader in providing consumers with the most accurate U.S. residential for-sale listings online*, today names the 10 most searched cities on the realtor.com® rentals mobile application for iOS and Android since the launch of the application. Realtor.com® is operated by Move, Inc. (NASDAQ: MOVE).

The most searched cities on the realtor.com® rentals application by rank are: Chicago; Las Vegas; Atlanta; Dallas; Orlando, Florida;Los Angeles; Houston; Miami; Charlotte, North Carolina and Jacksonville, Florida.

"The popularity of our rentals application underscores the crucial role mobile devices play as consumers search for homes and apartments for rent," said Steve Berkowitz, Move's chief executive officer. "Whether users are looking for pet-friendly properties or homes in a particular neighborhood, the realtor.com® rentals application is designed to simplify the rental search process."

Snapshot of 10 Most Searched Cities Using the realtor.com® Rentals Application

Rank	City	Total Inventory	Percentage of  Pet-Friendly Rental Listings
1	Chicago	3,544	49%
2	Las Vegas	4,497	4%
3	Atlanta	1,836	8%
4	Dallas	1,216	28%
5	Orlando	1,544	13%
6	Los Angeles	1,591	19%
7	Houston	2,706	14%
8	Miami	7,114	5%
9	Charlotte	1,399	8%
10	Jacksonville	1,746	10%

Information in this chart represents a snapshot of the data pulled from the realtor.com® search results pages on June 10, 2014.