Showing posts with label Kelsey Ramirez. Show all posts
Showing posts with label Kelsey Ramirez. Show all posts

Saturday, January 4, 2020

Total Student Debt Could Buy Every House on the Market ... Twice

According to a new study by Realtor.com, total student debt could buy every house on the market in the US.. twice!

Part of this interesting article by Kelsey Ramirez is below:


"Total student debt in the U.S. reached $1.5 trillion, a new all-time high, according to a new study by realtor.com. But what does that mean for the housing market?
The number $1.5 trillion sounds like a lot, but how much is it really when you break it down? Divided out, the average student loan borrower owes about $34,500, that’s $8,500 more than the typical down payment of $26,000, or an average 10% of the median home price of $260,000.
Put another way, $1.5 trillion is enough to buy every single home on the market in the U.S. Twice.
Let that sink in.

“Student debt has ballooned to an all-time high as the price of education continues to outpace wage growth, and this is holding back many potential buyers from being able to purchase a home,” realtor.com Senior Economist George Ratiu said. “Student debt is already impacting borrowers’ ability to buy a home and education debt is expected to hamper consumers’ financial decisions for many years down the road.”

The Department of Education explained that because wage growth is stagnant compared to the rapidly rising costs of education, students are taking on more debt than ever before to cover their expenses. Since 1986, tuition at public universities has grown at four times the rate of wage growth."

See the link to the full article from Housing Wire.

Francis

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Tuesday, June 5, 2018

New Surprising Buyers Demographics

New Surprising Buyers Demographics:

According to a new report by Veritas Urbis Economics, the landscape of buyers is changing in surprising ways as compared to  35 years ago.

According to this Housing Wire article by Kelsey Ramirez:
- the share of women as buyers has increased from 18.9% in 1981 to 46.4% in 2017,
- single women homebuyers make up 18.9% of all buyers, when it was just 9.1% in 1981,
- the share of households over 55 increased to 27.8% in 2017 (it was 16.1% in 1981),
- homebuyers under 35 made up 52% of all buyers in 1981, they are now under 34%.

How does it play out in the Bay Area of San Francisco, the Silicon Valley?
I don't think we fall within those stats very well when it comes to age.  In my (limited) experience, in the local market, there are quite a few younger households among the buyers, and as far as households over 55, they make up a lot of the sellers, not buyers: as people age, they are likely to sell their home at some point, and in that case they most often leave the area.  Typically this demographic segment does not buy in the Valley as prices and property taxes are too high for the retired population.  Although we do have a portion of the elderly buyers who are moving down, after selling a property that has become too large or far away for them.

Thank you for reading,

Francis

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A worthy local non-profit to remember: Community Services Agency in Mountain View.