Saturday, October 25, 2014

Millennials eye home ownership

Millennials eye home ownership


The millennials among us — folks born between 1982 and 2004 — don’t give a hoot about owning a home, goes the prevailing wisdom.
A differing opinion surfaced this week from a not too surprising source: The California Association of Realtors.
“Contrary to popular belief, millennials still highly value home ownership, and a majority expect to buy a home in the next five years,” the association said.
The group draws its conclusion from an online survey of adults 18-34 on their thoughts toward owning a house. condo or even a yurt. The rating scale went from 1 to 10, with 1 being not important at all, and a 10 signifying it’s extremely important.

Fifty-four percent of those surveyed felt buying a home rated an 8 or higher.
“The biggest advantages they see in home ownership are the freedom to do what they want with the property, privacy and the satisfaction of ownership,” the association said of the age group.
That makes them sound like the geezers of my generation, Gen X and Gen Y. It also looks like they have been paying attention to real-estate market trends.
Fifty-nine percent anticipate home prices increasing in a year, while 63 percent see them rising in five years, according to the survey. And the biggest obstacle to home ownership remains the same as it ever has: money.

Of the millennials who rent, 67 percent do so because they can’t afford to buy.
“Despite recent news reports of young adults moving back home to live with mom and dad, millennials haven’t completely written off home buying and still aspire to owning a home,” association president Kevin Brown said in a statement.
Among the current renters, 36 percent said affordable home prices would motivate them to buy now. Sixteen percent said the precipitating factor would be having the necessary down payment, and 15 percent would need an improvement in their finances.

Mixed housing market

State and regional housing markets continued to sputter along in September, the California Association of Realtors also noted this week.
Sales of previously owned single-family homes fell 4 percent from a year ago to an annualized rate of 396,440 units statewide, though sales were flat from August. The state’s median house price rose 8 percent from a year ago, up to $460,940.
In Los Angeles County, sales fell 2 percent from a year ago, while the median price rose 6 percent, to $414,300. And in the Inland Empire, sales rose 0.5 percent and the median price increased 9 percent, to $275,820.

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