Archive for August 2014

Economic Woes Cited By Parents of Home Bound Millennials

August 5, 2014

home-in-lifesaver-twoThis is a rather interesting study. The question that comes to mind that wasn’t addressed is it because that millennials are not making enough money to live on their own or is it that they don’t want to lower their standard of living to do so. For a more detailed look at this subject – please read the article below.

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Experts have surveyed the young generation again and again as to why they are staying with their parents, but now Fannie Mae has completed a survey of the parents they live with. As it turns out, more than half of them don’t mind their children living at home.

The National Housing Survey Topic Analysis segmented the millennial demographic into two ranges: the “younger” millennials aged 18 to 22, and the “older” crop aged 23 to 34. The results collected showed slight differences between the groups, but when asked if they would rather their children stay or move out, 68 percent of parents overall said “I prefer that they continue to live in my home.”

When asked why their children are staying home, the most common answer among parents of the younger crowd was that their children were saving money while still in school, representing 40 percent of responses.

The primary reason cited by 24 percent of parents for older millennials was “they do not have enough income to live in their own home,” a nod to the problems that this new group of adults face in relation to employment and low pay.

Other answers included the fact that the children were “not yet married,” which was chosen by 16 percent of older-group parents compared to 6 percent of younger-group parents; “we prefer to share the same house” (9 percent of parents among both groups); “they are saving money for the future” (more often selected by older-group parents at 11 percent); and “they are helping you to pay for the household expenses” (7 percent of older millennials compared to only 2 percent of the younger ones).

Among those millennials who stay with their parents because they are ill, the percentages were 2 percent for the younger segment and 3 percent for the older.

To read the complete article – please use the link below.

Home Bound Millennials

Housing Report Bucks Conventional Wisdom

August 4, 2014

house-mazeThis report is more of a statement that things are going to progress at about the same rate as current growth. The idea that this forecast is based on “real time” is somewhat misleading as it is using data showing “demand for housing is down” is based on figures March 2014 and the amount of cash purchases data is from December 2013. This is hardy real time data and more. It seems that the writer is using any data that strengthens his contentions. For a more detailed look at this subject – please read the article below.

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Conventional wisdom seems to suggest that recent housing data points to reasons for analysts to worry about the direction of the economy. A new report makes the case that the picture is much brighter than their consensus would lead one to think.

“It’s scary to be a contrarian, particularly if you’re contrarian and bullish. In retrospect, this position is the most fun— if you’re right,” said Michael Simonsen, co-founder and CEO of Altos Research.

Recently, his group published its 2015 Housing Report. Based on real-time observations of housing supply and demand, among other conclusions, the report is forecasting a 7 percent home price increase for 2015.

In terms of home prices, the U.S. real estate market hit the absolute bottom on January 4, 2011, according to the report. Since then, home prices are 39 percent higher.

“Yet every day we see media headlines declaring weakness and disappointment. As recently as June 2015, housing apparently remains a chief concern for Fed chief Janet Yellen, who uses phrases like much slower pace than expected and slowdown,” Simonsen said.

These attitudes reflect a myopic view of actual market conditions and conflate concerns over the mortgage industry, the otherwise-constrained new construction market, and, more broadly, the long-term financial stability of the U.S. consumer with specific current housing market supply and demand dynamics, according to Simonsen.

To read the complete article – please use the link below.

Housing Report