Why you shouldn’t focus on millennials
It might be desirable for the US housing market to be driven by the younger generation, keen to get a foot on the property ladder and working their way higher as their life progresses, but that isn’t necessarily the reality. The high price of homes, concern over the economy and a different way of looking at home ownership are holding many millennials back while older Americans have the mind-set and the money to keep buying.
The latest outlook from Freddie Mac highlights the power of over 55’s in the housing market. It shows that the baby boomers are staying in the family home for longer and that the number of households headed by someone over 55 will grow by 12.4 to 12.9 million over the decade 2010-2020. The age group hold an outsized share of both housing stock and housing wealth.
Freddie Mac chief economist Sean Becketti commented: "Demographics drive the housing market. The press overflows with questions about Millennials -- when will they form households and buy homes? The housing choices of the Millennials matter greatly, but just as impactful are the choices that will be made by the older generation, those who are 55 and older. The housing decisions of the 55+ age group will play a significant role in shaping the future housing and mortgage markets over the next decade. They control the supply and they hold the vast majority of the home equity
, some $8 trillion in total."
Prices continue to grow in Illinois, Florida
Home prices are growing in Illinois and Florida according to the latest data from local realtors. Illinois Association of Realtors report that median prices gained 6.3 per cent statewide in October compared to the same month in 2014. Sales volume was impacted by lower inventory and was down 2.8 per cent year-over-year to 12,881 homes. Average time to sell was down from 74 days in October 2014 to 68 days in October 2015.
Meanwhile in Florida, constrained inventory also affected sales and prices for single-family existing homes, although both increased. There were 22,147 sales in October 2015, up 1.2 per cent over the previous year. Median price increased 12.4 per cent year-over-year to $198,995. The time taken to sell a house was down to 46 days.
Who can keep up with the Kardashian’s home price hike?
Kim Kardashian and husband Kanye West are hoping to make a whopping real estate profit on their Bel Air mansion. The celebrity couple paid $9 million for the home in 2013 and according to TMZ they have spent around $2 million adding features including a gym, movie theatre and gold-plated toilets! The 16,000 square foot property set in 3 acres also includes a bowling alley, indoor pool, pavilion and two vineyards. The asking price? A cool $20 million.