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Monthly Archives: September 2014

Millennials enter housing market in unique way

On this blog, we often discuss the different housing trends seen across demographics. For the past few years, we have noted a decline in the numbers of young people seeking housing of their own away from the comfort and protection of mom and dad.

Until now.

Top housing markets also among nation’s poorest

When it comes to buying a home, most people are often hesitant to dive right in, which makes sense as this is likely the largest purchase that they will make. But no matter what mental state you are at in your home-buying process, it is important to weigh the cost against what you can reasonably afford.

The real estate data tracking firm RealtyTrac recently calculated and rated 2,270 counties across the nation in an attempt to determine the most affordable locations for home buyers. These rankings were based on an income-to-price affordability ratio, which was decided by comparing median monthly income with median monthly payments on an average-priced property in the area. According to USA Today, the higher the ratio, the lower the affordability, and vice versa.

Skyscrapers sprouting up in major metros for domestic and international buyers

As millennials surge into the job sphere, they are also starting to be a big part of the housing market. With so many young people getting jobs in major metropolises, the demand for housing in these areas is also increasing, but because these city landscapes are already largely developed, builders are resorting to skyscraper structures to accommodate the influx of people.

Additionally, these young professionals don’t want to put their money into rental units. This fact combined with the demand for American housing from international buyers is why these new builds or renovations are becoming skyscraper condominiums that are available for purchase.

Slow comeback of housing market has ripple effect

The most recent report calculating the rate of mortgage applications from the Mortgage Bankers Association showed an increase from the previous week. For the week ending August 29, the rate for mortgage application activity - including refinancing and home purchase - rose by 0.2 percent. On the other hand, fixed 30-year mortgage rates fell to 4.25 percent, down 0.03 percent from the previous week.

While the rates for application have increased week-over-week, the rise has not caused a marked improvement to the housing market as a whole. Although the market is expected to make a return to its pre-recession state in the near future, the slow resurgence has had a ripple effect through many other economic areas.