Likely Culprit: Exploding Student Debt “Economists believe younger Americans now are much more likely to rent for longer periods than did earlier generations ” due not only to the rising home prices and high credit standards but also the high student debt levels and elevated levels of underemployment.” —Wall Street Journal (5/23/2014) With the caveat that...Read More
How Rational? One of the most common concerns Buyers (especially first-time Buyers) have is, “what if I commit to buying this home, and then something ‘better’ comes on the market?” How reasonable is that fear? Put it this way: if the Buyer has done their homework, i.e., learned the market and fine-tuned what they’re looking for,...Read More
Millennials vs. Baby Boomers One of the most startling things I heard at yesterday’s Edina Realty annual meeting was the degree to which the Realtor ranks nationally are now dominated by (relative) old fogeys: something like half of all active agents are now over 40 years old (and not a few are over 65!). This, at the same...Read More
Guess Which Day Not to Close?? How much of the strength in the lower end of the housing market is due to the $8,000 tax credit being dangled by the government? The credit, available to first-time home buyers, expires Nov. 30. We’ll see in the next 30-60 days. That’s because anyone who wants to close...Read More
“Waiting for the Light” “Be aware that the market does not turn when it sees light at the end of the tunnel. It turns when all looks black, but just a subtle shade less black than the day before.” –Jeremy Grantham, “Reinvesting When Terrified“; (March 2009 Newsletter) Grantham, who manages $85 billion and is one...Read More
What Do Today’s Home Buyers Look Like? Contrary to popular opinion, home buyers are not an endangered (or extinct) species. Two of my clients just purchased homes, and three more are actively looking. So what generalizations can you make about them? They have many (if not all) of the following four attributes: One. First-time Buyers....Read More
