Snake People, Baby Boomers, and the 10-year anniversary of the housing crisis make an interesting week in real estate.
(From Bloomberg) Two generations are pitted against each other in the real estate market. As millennials start out on their own, they are battling a shortage of affordable inventory. People 55 and older now own 53% of the owner-occupied houses in the U.S. (the largest share since 1900). Millennials age 18-34 own just 11%. Baby boomers owned at twice that level at the same age.
What is contributing to the shortage? Property-tax exemptions for longtime resident and a shortage of affordable housing for seniors due to zoning restrictions.
(From NEFAR) Jacksonville is still experiencing a shortage of inventory. With only 3.4 months of inventory, it is still a seller’s market making it hard for buyers. The shortage of supply is causing prices to rise. The median sales price increased to $217,000 – an 11% increase over last year. Additionally, 12% of sales sold above listing price. Most transactions take about 60 days to close and the average Jacksonville property is staying on the market 67 days. That means if you see something you like, move quickly! It most likely will be under contract by the end of the first week.
(From USA Today) The Great Recession of 2007-2009 left an indelible stain on the housing market and our generation. Despite the crisis beginning 10 years ago, the effects continue to linger. Central banks and the government did make changes to lessen the impact of the crisis and to prevent (hopefully) another crisis. The housing and job market is seeing a recovery. Now ten years later, one of the crucial pieces of legislation, the Dodd-Frank act, is under fire as Trump’s administration wishes to see it rolled back.
(From Realtor Magazine) As home prices increase and buyer demand to own soars in tandem, lenders are looking for ways to finance buyers’ needs. Fannie Mae and Freddie Mac are creating programs to help homeownership and lenders are following suit by loosening standards. Sounds familiar doesn’t it? See article above! Lenders are arguing the standards are still stricter than the practices that caused the Great Recession. The biggest changes include the debt-to-income ratio increasing to 50% and incomes from people not listed on the loan being included for loan qualifications.
(From the Wall Street Journal) This article is purely for fun and is not directly related to real estate but who wouldn’t want this extension! There is a now a browser extension that changes the word “millennial” to “snake person”. Other common words associated with our generation like the Great Recession are also given new names. For those who are sick of the word, you can entertain yourself with this new extension for hours. Agent Snake Person, out!
Subscribe to receive these weekly updates to your inbox!