January 2013 Quick Takes

Illinois REALTOR® Magazine | January 2013

Multigenerational Households on the Rise

map showing multigenerational housing in U.S.

Of the 76 million family households in the U.S. about 5.6 percent (4.3 million) are multigenerational, an increase from 3.7 percent in 2000, according to the U.S. Census Bureau. In Illinois, multigenerational households also accounted for 5.6 percent.

Fannie/Freddie streamline short sale guidelines

In November, the Federal Housing Finance Agency streamlined the short sale process for Fannie Mae and Freddie Mac borrowers. Here are some of the key changes and objectives:

  • Homeowners no longer have to be delinquent on their mortgage payments if they have an eligible hardship including: a death in family, job loss, job relocation, disability or divorce.
  • Mortgage servicers can qualify borrowers more quickly.
  • Waives the right to pursue a deficiency if the borrower agrees to make a financial contribution when able.
  • Allows for special treatment for those in the military.
  • Consolidates short sale programs.
  • Offers second lien holders up to $6,000 in the aggregate to “expedite” short sales.

Sources:  www.fhfa.gov/webfiles/24211/Shortsales82112Final.pdf
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Who are today’s buyers and sellers?

Get a clearer picture of the buyers and sellers shaping the market with NAR’s 2012 Profile of Home Buyers and Sellers, www.realtor.org/topics/profile-of-home-buyers-and-sellers. Here are some of the highlights:

  • Married couples were a driving force in 2012, making up 65 percent of buyers (the highest share since 2001) and 76 percent of sellers.
  • The age of the typical buyer was 42, down from 45 in 2011, but higher than 39 years which was the median age in 2010.
  • Eighty-nine percent of buyers used an agent or broker.  The trend was similar to last year but far higher than 2001 when only 69 percent used an agent.
  • Thirty-nine percent of buyers in 2012 were first-time buyers, higher than 37 percent in 2011 and closer to the historical norm of 40 percent.
  • Ninety percent of buyers used the Internet to find a home.
  • For buyers under 44 years of age, it was even higher at 96 percent.
  • The typical tenure for owners to stay in a home was nine years,up from six years in 2007.
  • When deciding to sell, 46 percent of sellers moved up to a larger,higher-priced home and 62 percent purchased a newer home.

2012 NAR Profile of Home Buyers and Sellers

Illinois increases funding for military homeownership program

Illinois has invested an additional $5 million in Welcome Home Heroes, a state financing program aimed at helping veterans and active military personnel become homeowners. In the last year, 550 military families received financing through the program and the additional funding could assist 500 more families in buying a home, according to the Illinois Housing Development Authority (IHDA). Learn more about Welcome Home Heroes at www.ihda.org/homeowner/heroes.

750 average credit score statistic

Growing Number of New Households Forming

Household formations are on the rise again after falling in recent years, data from the U.S. Census Bureau shows. In the last year, 1.15 million new households were formed, marking the fastest increase in more than six years, according to an analysis by the Wall Street Journal. In the last four years, the rate averaged closer to 650,000 new households annually.

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