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Are Fewer Young Americans Buying Homes?

A newly released study from researchers at the University of Southern California looks at homeownership rates among young adults between the ages of 25 and 44. The study’s results show, among that age group, there’s been a 10 percent drop in the homeownership rate over the past 10 years.

But does that necessarily mean young Americans are no longer interested in owning their own home? Well, no. The researchers point to a number of factors that have contributed to the decline in homeownership among people of typical prime home-buying age. Among them, the foreclosure crisis looms large. Because the past 10 years includes the years following the housing crash and economic crisis, some of that decline is better explained by the day's economic conditions rather than a lack of desire to buy a house. And, in the years since, the recovery's slow pace and weakened job market have made buying a home a struggle for many young Americans.

More recently, home buyer demand has rebounded – as have home prices and the labor market. And, according to this particular study, so will the homeownership rate among young Americans, particularly if there's a continued rise in education and income levels. More here.

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Tracking The Habits Of First-Time Home Buyers

First-time home buyers have always been an important demographic when tracking the housing market’s health. Whether or not younger Americans were buying homes, where they were buying, and in what numbers has been used to gauge trends and patterns that affect, not only first-time buyers, but everyone active in the real-estate market. Because of that, a new report from Genworth Financial analyzing first-time home buyer records back to 1994 is an important look at the who, what, where, and how of Americans buying their first home. Some of the highlights include the fact that first-time buyers bought more single-family homes during the first quarter of 2017 than during any other first quarter since 2005 and drove 85 percent of the housing market’s expansion from 2014 through 2016. In other words, the report found that there is currently a high level of demand among younger Americans. But it also found that many potential buyers have been unable to buy or have stayed out of the market due to misconceptions about what was required. Tian Liu, Genworth’s chief economist, says one of the main issues is the mistaken belief that a 20 percent down payment is required to buy. “By studying this group more closely, we hope to bring a better understanding about the many low down payment options available to help first-time home buyers reach homeownership sooner.” More here.

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Homes May Be More Affordable Than You Think

Rising home prices have gotten a lot of attention over the past couple of years. In some places, they’ve even been said to have fully recovered from the housing crash. But a closer look at the numbers reveals a different story. Because many gauges of national home prices use averages to measure how much prices have gained or fallen, higher-priced homes have more weight and can skew the results. For a more accurate look, a recent study from Trulia compared a home’s current market value to its pre-recession peak instead. Their method found that just 34.2 percent of homes nationally have recovered their value. That means, though prices have definitely been rising, there are still a lot of homes that haven’t yet climbed all the way back. That’s good news for buyers but it also means there are many homeowners who are still waiting for their homes to regain value before they sell – which is why there are many markets where there are fewer homes available for sale than usual. Also, it should be noted that, as with anything real estate, where you are has a lot to do with the conditions you’ll find. For example, markets in the West and South have generally seen home prices increase faster than those in the Midwest and Northeast. More here.

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The Real Reason There Are Fewer Homes For Sale

These days, many markets are suffering from a lack of homes for sale. And where there are fewer homes to buy, there are higher prices and more competition among buyers. But what’s behind the shortage?

What’s behind the housing shortage?

Well, a new survey reveals the real reason homeowners have decided to stay put and it’s probably not what you’d expect. The survey found simple demographics may be the biggest factor. A closer look at the numbers reveals that younger homeowners have plans to sell in the near future but the vast majority of baby boomers don’t. In fact, 85 percent of older homeowners said they had no plans to sell in the next year. This, however, isn’t that odd. Older Americans have always been less likely to move.

The difference these days is that the overall population has grown older. The share of Americans between the ages of 55 and 74 has risen 30 percent in the past 30 years. That means, there are more older homeowners who aren’t that likely to put their homes up for sale. The good news, though, is that 60 percent of owners who said they were hoping to sell within the next year are millennials, which means there could soon be more affordable homes on the market for interested first-time buyers.
More here.

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Millennials Say Having A Dog Is A Top Reason To Buy

Millennials Say Having A Dog Is A Top Reason To Buy

There are a handful of common answers that come up time and time again when Americans are surveyed about their reasons for buying a home. For example, a desire for more space is always at or near the top of any list documenting prospective buyers’ main motivations.

If you’ve run out of space where you are<!–more–>

After all, if you’ve run out of space where you are – whether it’s because you’ve started a family or because you’ve got a lot of stuff – you’re probably going to be eager to move somewhere bigger. But though survey after survey finds we all share some common wants and needs when it comes to our homes, a new survey of young Americans who have never owned a home found a surprising reason behind their desire to become homeowners.

So, what was it? Well, 42 percent of respondents said their dog, or desire to have one, was a key factor in wanting to one day buy a home of their own. And, though that may seem unusual to those of us who don’t have pets, those that do, more often than not, consider them a part of their family. So, for a renter who may have trouble finding a landlord that will allow pets at all or one that won’t charge them extra for having one, buying a home can provide a less stressful environment for both the homeowner and their beloved pet. More here.

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How Long Does The Typical Home Search Last?

Parker Scott Properties Clocks
Parker Scott Properties Clocks

You don’t want to feel rushed when choosing a home to buy. It’s a big decision and one you’ll be living with for many years to come. So it’s best to take your time and only make an offer when you find a house that’s really right for you. But though that’s true, you may wonder along the way if you’re taking longer than usual or seeing more homes than the typical buyer. So how long does the usual home buyer search for a home? Well, according to the National Association of Realtors, the length of the median home search has gotten longer over the past 30 years. In fact, buyers in 1987 searched a median of seven weeks before buying a house. In recent years, that’s risen to as much as 12 weeks – though it’s held steady at 10 weeks since 2014. During those 10 weeks, buyers typically look at 10 homes before finding one that fits their needs. That’s fewer than it used to be, but not by much. The median number of homes buyers see before purchasing has generally been between 10 and 12 homes for the past 30 years. More here.

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Home Sales Hit Highest Pace In A Decade

Parker Scott For Sale
Parker Scott For Sale

Autumn may typically be the time of year when home sales start to slow down but new numbers show sales of previously owned homes up for the second straight month and at their highest annual pace since February 2007. The data, from the National Association of Realtors, shows October sales up 2 percent over the month before and 5.9 percent above last year’s estimate. Lawrence Yun, NAR’s chief economist, says the past two months have been an autumn revival for the housing market. “October’s strong sales gain was widespread throughout the country and can be attributed to the release of the unrealized pent-up demand that held back many would-be buyers over the summer because of tight supply,” Yun said. “The good news is that the tightening labor market is beginning to push up wages and the economy has lately shown signs of greater expansion. These two factors and low mortgage rates have kept buyer interest at an elevated level so far this fall.” Sales were up in all regions, with the largest gains in the South, where home sales rose 2.8 percent. Also in the report, the typical home stayed on the market for 41 days in October, though 43 percent of homes sold in less than a month. More here.