Current Real Estate Market Favors Older Buyers

YOUNGER HOMEBUYERS STRUGGLE TO KEEP UP WITH MARKET 

Silver-haired homebuyers increasingly have a leg up over their younger counterparts, who are struggling to afford homes in the current market, new research suggests. 

Rising home prices have boosted older Americans’ equity, enabling them to buy new or second homes, sometimes in cash, according to BBVA Compass data.

“Younger people are finding it more difficult to buy into the American dream of homeownership with price tags that outpace their income growth,” the financial group said in a statement. 

Still, BBVA predicted the U.S. housing market would continue to flourish in 2014, with prices increasing an estimated 8.5 percent and the number of owner-occupied homes growing for the first time in seven years. 

COUPLES CHOOSING PROPERTY OVER WEDDED BLISS 

It should probably come as no surprise then that many couples are delaying tying the knot to buy a home instead.

“These practical pairs haven’t given up on the idea of marriage, they just can’t afford to buy a home and pay for a wedding at the same time, and interest rates are too enticing right now,” Redfin reported just in time for Valentine’s Day. 

The brokerage points out that this may actually be a savvy financial choice. Wedding and honeymoon costs add up to a whopping $35,000 for the average happy pair. But putting that cash down on a $175,000 home could result in nearly $47,000 in gained equity over five years. 

Article courtesy of PacificUnion.com

Saraya and Simon Motley
Pacific Union and Christie’s International Real Estate
Serving Alameda & Contra Costa Counties
510.459.4338/direct . 925.385.8503/direct
925.403.7802/eFax
saraya@eastbayhouse.com
www.eastbayhouse.com
CalBRE License #01265873 

(Photo: Flickr/ChrisGoldberg)