April 1, 2014 12:30 pm
We have often gone against the grain to promote the fact that Millennials have a stronger belief in homeownership
than previous generations. Some have strongly disagreed. Well, a new study from the National Association of Realtors
(NAR) found Millennials now account for the greatest market share of recent home purchases.
NAR’s Home Buyer and Seller Generational Trends Study for 2014
, revealed that Millennials comprised 31 percent of recent purchases, leading all other age groups. Here are the percentages for other generations:
- 30% - Generation X
- 30% - Boomer Generation
- 9% - Silent Generation
NAR chief economist Lawrence Yun explained:
“Given that Millennials are the largest generation in history after the baby boomers, it means there is a potential for strong underlying demand. Moreover, their aspiration and the long-term investment aspect to owning a home remain solid among young people.”
March 31, 2014 12:21 pm
We believe that 2014 will be the year that Millennials re-enter the housing market in a big way. Because of that, we will be dedicating our blog posts each day this week to a better understanding of this generation. - The KCM Crew
A recent survey
by the PulteGroup
revealed that the Millennial generation has a more optimistic outlook regarding the American economy than other generations. According to the survey, 54% of Millennials believe the economy is in better shape today than it was last year compared to only 41% of the total population.
It seems this optimism is impacting purchasing decisions as 74% of Millennials view now as an excellent or good time
to buy the things they want or need. Jim Zeumer, vice president of corporate communications for the PulteGroup
"No other cohort of adults is nearly as confident about their economic future as the millennials are right now. This is definitely a change, as millennials have regularly been viewed as the disenfranchised generation vastly affected by the fallout of the recession. But now, with an increased sense of optimism, this generation is starting to feel as though they have the resources available to lead the lives they want or expect to in the future."
WHAT ABOUT HOUSING?
March 27, 2014 11:39 am
asked David Berson, chief economist at Nationwide
, for his opinion
on the near-term future of housing. Below are what Mr. Berson believes to be the three things you need to know about housing in 2014. We have included a quote from the article and a small comment from KCM for all three points.
Number 1: 2014 should prove to be the strongest year for housing activity since before the Great Recession
“Most economists expect an improved job market in 2014, with employment growth accelerating and the unemployment rate continuing to decline. That jobless rate drop will reflect more of a pickup in employment than further declines in the labor force participation rate. This will be the key factor improving housing demand this year, even if mortgage rates rise and affordability declines. While the housing market tends to do especially well when the job market improves and mortgage rates decline simultaneously, that combination of events occurs only rarely…People buy homes when their job and income prospects improve – even if it’s more expensive to do so – rather than buy when it is inexpensive to do so but they’re worried about keeping their jobs.”
March 26, 2014 11:36 am
"One thing seems certain: we aren't likely to see average 30-year fixed mortgage rates return to the historic lows experienced in 2012." -
Freddie Mac, March 24, 2014
There are those that hope that 30-year mortgage interest rates will head back under 4%.
Obviously, for any prospective home purchaser that would be great news. However, there is probably a greater chance that interest rates will return to the greater than 6% rate
of the last decade before they would return to the less than 3.5% rate
Freddie Mac, in one of four original posts on their new blog
, explained that current rates are still extremely low compared to historic averages: