J. Kent Erickson, Broker Associate
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Be on the Lookout for Gen Z: The Next Generation of Homebuyers

Posted by on Nov 6, 2019 in Home Ownership | 0 comments

You’ve likely heard a ton about Millennials, but what about Gen Z? In the next 5 years, this generation will be between the ages of 23 and 28, and they’re eager to become homeowners faster than you may think. According to realtor.com, “Nearly 80 percent of Generation Z members say they want to own a home before age 30,” and Concentrix Analytics said, “52% of prospective Gen Z buyers are already saving to buy a home.” Wikipedia defines Generation Z (Gen Z) as “the demographic cohort after the Millennials. Demographers and researchers typically use the mid-1990s to mid-2000s as starting birth years.” The report from Concentrix goes a little deeper on Gen Z, identifying the main reasons this cohort wants to own homes: 55% want to own a home because they want to start a family 47% want to...

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Homeownership is the Top Contributor to Your Net Worth

Posted by on Nov 1, 2019 in Home Ownership | 0 comments

Many people plan to build their net worth by buying CDs or stocks, or just having a savings account. Recently, however, Economist Jonathan Eggleston and Survey Statistician Donald Hays, both of the U.S. Census Bureau, shared the biggest determinants of wealth, “The biggest determinants of household wealth [are] owning a home and having a retirement account.” (Shown in the graph below): This does not come as a surprise, as we often mention that homeownership can help you to increase your family’s wealth. This study reinforces that idea,  “Net worth is an important indicator of economic well-being and provides insights into a household’s economic health.” Having equity in your home can help your family move in that direction, building toward substantial financial growth. According to the report noted above, people are not only creating net worth in the homes they...

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Homeowners Are Happy! Renters? Not So Much.

Posted by on Oct 14, 2019 in Home Ownership | 0 comments

When people talk about homeownership and the American Dream, much of the conversation revolves around the financial benefits of owning a home. However, two recent studies show that the non-financial benefits might be even more valuable. In a recent survey, Bank of America asked homeowners: “Does owning a home make you happier than renting?” 93% of the respondents answered yes, while only 7% said no. The survey also revealed: More than 80% said they wouldn’t go back to renting 88% agreed that buying a home is the “best decision they have ever made” 79% believed owning a home has changed them for the better Those surveyed talked about the “emotional equity” that is built through homeownership. The study says more than half of current homeowners define a home as a place to make memories, compared to 42% who view a...

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Millennial Buying Power Poised to Boost Homeownership

Posted by on Sep 18, 2019 in Home Ownership, Real Estate Market, Selling a Home | 0 comments

In a recent article by Realtor Magazine, Mark Fleming, Chief Economist of First American Financial Corporation, notes, “The largest group of millennials by birth year will turn 30 in 2020, which puts them entering their prime homebuying years”. The article continues to describe how millennials have more buying-power than the generations that preceded them, making their interest in embracing homeownership stronger than ever, “Millennials—the most educated generation—have the highest incomes across their generational cohorts, even when salaries are adjusted for inflation.” This combination of power and desire has the potential to drive positive growth in the homeownership rate heading into the near future. According to Fleming, ‘“The gap between the potential and actual homeownership in 2018 narrowed slightly as the growth in homeownership modestly exceeded the increase in potential demand,” he says, citing First American’s Homeownership Progress Index. “We...

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Experts Predict a Strong Housing Market for the Rest of 2019

Posted by on Sep 13, 2019 in Home Ownership, Real Estate Market | 0 comments

We’re in the back half of the year, and with a decline in interest rates as well as home price and wage appreciation, many are wondering what the predictions are for the remainder of 2019. Here’s what some of the experts have to say: Ralph McLaughlin, Deputy Chief Economist for CoreLogic “We see the cooldown flattening or even reversing course in the coming months and expect the housing market to continue coming into balance. In the meantime, buyers are likely claiming some ground from what has been seller’s territory over the past few years. If mortgage rates stay low, wages continue to grow, and inventory picks up, we can expect the U.S. housing market to further stabilize throughout the remainder of the year.” Lawrence Yun, Chief Economist at NAR “We expect the second half of year will be notably better than the...

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A Great Way to Increase Your Family’s Net Worth

Posted by on Aug 21, 2019 in Home Ownership | 0 comments

Every three years, the Federal Reserve conducts its Survey of Consumer Finances. Data is collected across all economic and social groups. The latest survey data covers 2013-2016. The study revealed that the median net worth of a homeowner is $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013). These numbers reveal that the net worth of a homeowner is over 44 times greater than that of a renter. Owning a home is a great way to build family wealth. As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home. That is why Gallup reported Americans picked real estate as the best long-term investment for the sixth year in...

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