HOMEOWNERSHIP DESIRE GROWS; OPTIMISM REIGNS : SURVEY SHOWS MORE AMERICANS READY TO BUY THEIR OWN HOMES.

Byline: Ben Sullivan Daily News Staff Writer

Reflecting a housing boom well under way locally, a national survey released Thursday indicates more Americans than ever want to buy a home and believe they have the means to do so.

Among renters, six in 10 said that buying a house was a top priority, according to the 1998 Fannie Mae National Housing Survey. And thanks to a booming economy, hurdles cited in the past such as lack of money, weak job confidence and social barriers have fallen to their lowest levels this decade, the survey found.

The Fannie Mae study is used by the government-mandated lender to track demographic and geographic trends among current and would-be home buyers. The publicly held Fannie Mae was created by the U.S. Congress in 1938 and is the largest source of mortgage financing in the nation.

While personally optimistic, potential home buyers are less convinced that the market is poised in their favor, the survey found, with just 65 percent saying this is a ``somewhat to very good time to buy a home,'' down from highs in 1993 and 1994 when 72 percent and 76 percent thought so.

But 58 percent of renters said they are ``somewhat confident or totally confident'' they would qualify for a mortgage if they applied today, up from 52 percent when the question was last asked on the survey in 1996.

``Low interest rates and a strong economy are making Americans more confident that home ownership is within reach for them,'' Fannie Mae Chief Executive James Johnson said in a statement. Those conditions also make potential buyers ``less likely to believe that obstacles stand in their way,'' he said.

That sort of enthusiasm nationally is being seen locally as well. In the first sign of a broad-based recovery in the local housing market this decade, single-family home sales soared in June because homes in all price ranges are moving swiftly, the Southland Regional Association of Realtors reported earlier this week.

``There's an awful lot of people trying to get into the marketplace and frankly not enough listings,'' said Bud Mauro, president of the organization, which represents Realtors in the San Fernando and Santa Clarita valleys.

Mauro said that within the Greater Los Angeles market, the Valley is particularly well-situated to benefit from buyer confidence.

``Compared to other parts of L.A., we have the best prices . . . and newer homes,'' Mauro said. ``If the Valley is an option for a buyer, they're probably going to buy here.''

The new survey's other major conclusion was that aging baby boomers facing empty nests when their children move away will create a wave of home sales and new financing to take advantage of the equity they've accumulated in their houses.

Better than seven in 10 adults ages 40 to 54 say they are or will be empty nesters within the next decade. About one-third say they plan to sell their homes and buy a new one, the survey found - a phenomenon that should create a new liquidity in the housing market.

``The fact that one-third of a demographic group as large as baby boomers intends to sell the homes they're in today and move into other homes has enormous implications for the the real estate and mortgage finance industries,'' said Fannie Mae spokesman John Buckley. Even with just one-third planning to sell, he said, ``that is a lot of homes.''

Among those who said they plan to buy a new home, 38 percent said they will buy one of comparable value; 29 percent will trade up; and 32 percent plan to buy a home of lesser value.

The 53 percent of baby boomers who plan to stay put represents potential for the housing and mortgage industries, Fannie Mae officials said. For example, 45 percent of baby boomers said they found reverse mortgages either ``somewhat or very appealing,'' portending significant growth for reverse mortgage lending.

CAPTION(S):

Photo, 2 Charts

PHOTO (Color) Houses such as these going up in Sylmar fill the growing housing demand being felt nationwide. Home sales in the Valley soared in June.

Gene Blevins/Special to the Daily News

CHART: WHAT WILL THEY DO?

(1) Baby Boomers

(2) Generation X

Source: Fannie May 

Dionisio Munoz

Daily News