J. Kent Erickson, Broker Associate
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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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The Benefits of Growing Equity in Your Home

Posted by on Aug 19, 2019 in Real Estate Market | 0 comments

Over the last couple of years, we’ve heard quite a bit about rising home prices. Today, expert projections still forecast continued growth, just at a slower pace. One of the often-overlooked benefits of rising home prices is the positive impact they have on home equity. Let’s break down three ways this is a win for homeowners. 1. Move-Up Opportunity With the rise in prices, homeowners naturally experience an increase in home equity. According to the Homeowner Equity Insights from CoreLogic, “In the first quarter of 2019, the average homeowner gained approximately $6,400 in equity during the past year.” This increase in profit means if homeowners decide to sell, they’ll be able to put their equity to work for them as they make plans to move up into their next home. 2. Gain in Seller’s Profit ATTOM Data Solutions recently released their Q2 2019 Home Sales...

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American Confidence in Housing at an All-Time High

Posted by on Aug 16, 2019 in Real Estate Market | 0 comments

Fannie Mae just released the July edition of their Home Purchase Sentiment Index (HPSI). The HPSI takes information regarding consumers’ confidence in the real estate market from Fannie Mae’s National Housing Survey and condenses it into a single number. Therefore, the HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions. Great News! The index reached its highest level since Fannie Mae began their survey. Breaking it down, the report revealed: The share of Americans who say it is a good time to buy a home increased from the same time last year. The share of those who say it is a good time to sell a home increased from the same time last year. The share of Americans who say they are not concerned about losing their job over the next 12 months increased dramatically (16 percentage points) from the same time last year. The...

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Why All the Chicken Littles Should Calm Down

Posted by on Aug 12, 2019 in Real Estate Market | 0 comments

The U.S. Census Bureau recently released their 2019 Q2 Homeownership Report. Some began to see the sky falling, believing the report showed Americans may be stepping back from their belief in homeownership. The national homeownership rate (Americans who owned vs. rented their primary residence) increased significantly during the housing boom, reaching its peak of 69.2% in 2004. The Census Bureau reported that the second quarter of 2019 ended with a homeownership rate of 64.1%, which is down from the 64.8% rate for the fourth quarter of 2018. Based on this news, some started to question the consumer’s belief in the idea of homeownership as a major part of the American Dream. Everyone Calm Down… It is true the homeownership rate did fall. However, if you look at the national rate over the last 35 years (1984-2019), you can see that the...

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Millionaire to Millennials: The Costly Mistake of Not Buying Now

Posted by on Aug 11, 2019 in Buying a Home, Real Estate Market | 0 comments

Millionaire to Millennials: The Costly Mistake of Not Buying Now On his personal website, self-made millionaire David Bach makes a striking statement:  “Not prioritizing homeownership is the single biggest mistake millennials are making.”  He further stated, “Buying a home is an escalator to wealth.” Bach explains: “Young adults in particular aren’t hopping on this escalator, and it’s a costly mistake…If millennials don’t buy a home, their chances of actually having any wealth in this country are little to none.” He then elaborates on the game of homeownership: “Start by crunching the numbers…actually do the math…This way, you’re really clear on your goals and you won’t just say to yourself, ‘I’ll never afford this!’ A good rule of thumb is to make sure your total monthly housing payment doesn’t consume more than 30 percent of your take-home pay.” Bach concludes by saying, “Oftentimes,...

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