Posted on 08/26/2014 11:37:43 AM PDT by Lorianne
Generation X homeowners are far more likely to be underwater on their mortgage than millennial and Baby Boomer homeowners, a generational block that could limit the market for years, according to the second quarter Zillow® Negative Equity Reporti. The overall national negative equity rate fell to 17 percent in the second quarter, with more than 8.7 million homeowners with a mortgage owing more than their home was worth.
Approximately 42.6 percent of Generation X homeowners (those aged from 35 to 49) are underwater on their mortgage, compared to 15.3 percent of millennial homeowners (20-34 years old) and 31.1 percent of Baby Boomers (50-64 years old). Because it is very difficult for an underwater homeowner to list their home for sale, the wide disparities among generations stand to have ripple effects throughout the housing market. Baby Boomers may not be able to find move-up buyers for their homes as Gen X remains stuck, and millennials can't move into the more affordable starter homes currently occupied by Gen X.
(Excerpt) Read more at seekingalpha.com ...
Its the end-game of a money-printing FED, a fiat currency, and a massive government.
A culture of debt and crony-capitalism, where the politically-connected can game the system and everyone else pays in the form of debt slavery and debased currency and savings.
I just don't understand...the obama bootlickers posing as financial journalists wouldn't be trying to blow sunshine up their viewers posteriors, would they?
I think you're spot on with that comment. Someone who works in a field that has easily transferrable skills; e.g., computer programming, project management, etc., they can probably stay in one moderately-sized city or region and maintain a steady income and mortgage.
If you work in a field that's subject to layoffs and regular cutbacks, or have a specialty skill where movement between jobs might mean picking up and moving to a new city, it makes little sense to lock yourself into a decades-long mortgage.
You might have to sell underwater, or in a down real estate market. Not the best for coming out ahead financially.
“Heck, I don’t know why they go into debt for college. I don’t understand why they aren’t taking public transportation or driving cheap used cars.”
Those are legitimate questions. Things are changing now, but the myth that a college sheepskin means a lifetime of above average living was pretty compelling back in the day. Borrowing was easy; repayment terms seemed reasonable. And the high school graduate could avoid the stigma of ‘not having gone to college’.
As far as the twenty-somethings living within their means, quite a bit of peer pressure to live a certain way. On top of that, everyone feels young, strong, and invincible - “I’ll find a way to pay for it all...somehow.”.
I’m not trying to make excuses, We’re I to do it over I NEVER would have borrowed to go to school. Heck, knowing what an indoctrination mill most of them are, I may not have gone at all!
There was doctor in our town that tore down a house on a double size lot that cost him $330K. He then built a nice home on the lot during the bubble. He moved out of state and tried to sell it for $1M. It sat for several years and he finally sold it a couple of years ago for $550K. One of the main problems the guy had, is the house is in neighborhood were most of home values are around $200K and Fannie Mae loan limits are in the low $400K for our area..
I was shocked when I first learned that people were making 7 year car loans, now someone tells me that there are 10 year car loans.
A + B = Realtors are about to become the strongest, loudest lobby in favor of student loan forgiveness.
I occasionally get roped into watching the flipper shows on HGTV with the wife unit. I am always amazed at the number of under 35 types who are purchasing an 1500 square foot house for $550,000 and then spend $50,000 on renovations. Where is the money coming from? Better yet what morons pay for that kind of property when you can buy a lot cheaper in the south and midwest (excluding tech boom areas like Austin, but it is still cheaper)?
You can buy 1800-2300 square feet down here all day for $100-$165 a square foot not a suicidal $300+.
The problem with getting a mortgage today did not exist before the collapse of the housing market. If someone needs to get a job somewhere else, there's no assurance they can sell their house in a timely manner. Even if they can, in most cases there won't be much if any equity. So, that house is a prison unless they default, and then their credit rating will destroy them.
I don't know the answer. Affordable housing in assuredly safe areas hadn't been a problem for decades, for my adult life. But with todays economic conditions? And the real threat of chaos and collapse? I'd think the most important thing to have is the ability to get up and go and be able to afford to live somewhere else for at least six months while figuring it out.
You look around here and you see tons of under 30’s driving $50,000 cars (Audis, BMW, Mercedez, Land Rovers) . Truly amazing.
I had a rental here, it rented for more than I pay for the mortgage on our home. The rental market is hot here - 1 bds going for $2k. And that is if you can live on your own. Really, kids would have to share living with all of the crazies of the world; impossible to go it on your own.
Might as well live at home with the crazy parents.
We have been “new” car shopping lately. I am floored at the prices of pickups. I saw one that was $599 a month ($600).
I pay $900 for a mortgage. That is another mortgage.
Because neighborhoods like that tend to look like Ferguson, after dark.
Personal safety now comes with a pretty steep price tag, in much of the country.
My wife's uncle did this. He lived with his parents until he was at least 48 or so. He worked from early in the morning until late at night for his landscaping business, rarely coming home for lunch or dinner (basically he slept there, and ate breakfast there). The house was paid off, and I think he paid the utilities and probably helped with taxes and insurance. He slept in what was his original bedroom, which was a converted garage.
He finally moved out and got his own place a few years back, and probably paid cash for it.
I’m an Xer and my husband and I own our home outright. I guess we’re an anomaly, as are a few friends who also have no mortgages.
Well, I don’t want him around until he is 48. But he is welcome to get his feet under him after school before diving in and living in debt his whole life.
My dad had a family business, so you stayed at home or near home after 18 because you were still working on the land, so it isn’t so strange to me. My brother’s didn’t really move out until they got married.
There are safe places. The problem I had when searching is that I also want public transportation nearby. I'm happy with my area, and it's held up so far.
And you better hope and pray your local property tax office doesn’t suddenly decide your neighborhood needs to be taxed to the moon. That’s what ours has done and everyone is being taxed out of their homes. Two summers ago, literally every other house on our street was on the market. When property taxes go from 2 weeks income to 3 months of income, something is seriously wrong.
I don’t want my kids to pay rent, I would rather help them get their first home.
The way I see it, the money they pay to some outsider in the form of rent is money that escapes the family.
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