Real Estate News- SUSAN TURNER

Screen shot 2018-08-10 at 3.51.28 PM.png

Numbering just over 75 million, today’s 21- to 37-year-olds—millennials—are the largest generation in US history. They are more tech savvy, more racially and ethnically diverse, more educated, and they marry and have children later in life than previous generations. Although most millennials have now entered peak household formation and homebuying years, they are becoming homeowners later and at lower rates. The Urban Institute's new and extensive Millennial Homeownership report finds the homeownership rate of millennials aged 25 to 34 was 37 percent in 2015, approximately 8 percentage points lower than the homeownership rate of Gen Xers and baby boomers at the same age. If the millenial homeownership rate mirrored previous generations, there would be about 3.4 million more homeowners today. The report examines demographics, lifestyle choices, and external barriers to homeownership to determine which factors have the greatest influence on millennials’ homebuying decisions. Findings show delayed marriage has the most significant impact on millennial homeownership. In addition, increased racial diversity and higher debt levels also play a significant role. Despite the lag, attitudes toward homeownership haven’t changed much and are expected to continue to strengthen as millennials age. Source: The Urban Institute Owning a home makes almost half of Americans feel wealthy in their day-to-day lives, according to the Modern Wealth Index released by Charles Schwab. When Schwab asked a thousand Americans about their personal definitions of wealth in their lives, 49% said they believe saving and investing is the way to achieve wealth over time. However, other things, including homeownership, make them feel wealthy in their day-to-day lives. The survey revealed 49% of Americans feel wealthy when they own a home. However, homeownership was not at the top when Americans defined wealth. Sixty-two percent of the respondents defined wealth as spending time with family, while 55% said wealth means having time to themselves. Owning a home came in third. Americans also said they felt wealth in their daily lives when they eat out or have meals delivered (41%) and when they have subscription services like movie/TV and music streaming (33%). The company also asked respondents to focus just on numbers. Respondents said they believe it takes $1.4 million to be considered financially comfortable, while it takes $2.4 million to be considered truly “wealthy.” Source: Mortgage Professional America The most competitive, tightest housing market in decades may finally be loosening its grip, and it could put pressure on overheated home prices. The supply of homes for sale in the second quarter of 2018, the all-important spring market, rose at three times the rate of the same period in 2017, according to Trulia, a real estate listing and research company.

 

The inventory jump was the largest quarterly improvement in three years and could be signaling a slight thaw in today’s housing market. But it is just a start. “This seasonal inventory jump wasn’t enough to offset the historical year-over-year downward trend that has continued over 14 consecutive quarters,” according to Alexandra Lee, a housing data analyst for Trulia's economics research team. The supply of homes for sale is still down 5.3 percent compared with a year ago. Still, all real estate is local, and some markets are seeing greater relief. Thirty of the nation’s 100 largest cities now have more supply than a year ago. Source: CNBC