Posted on 08/24/2017 5:50:37 PM PDT by 2ndDivisionVet
Millennials in the U.S. were so slow to become homeowners that it was beginning to look like they'd rent forever. Now they're a force in the market for new high-end houses.
Toll Brothers Inc., the largest U.S. luxury-home builder, said Tuesday that 23 percent of its sales this year were to customers with at least one buyer age 35 or younger. That was a surprise, given that the company's average contract price in the three months through July was $837,300.
Buyers in their 20s and 30s have been slow to purchase for good reason. They're marrying and having children later and face a tight existing-home market, where sellers routinely get multiple offers. But the delay has given some of them time to save for a down payment.
"We've been pleasantly surprised," Fred Cooper, vice president of investor relations at Horsham, Pennsylvania-based Toll, said in an email. "These people, who may each have 10 years of work under their belts, can afford a first home that is more luxurious than what one thinks of as the typical starter home."
Homeownership by young people is still low by historic standards....
(Excerpt) Read more at dallasnews.com ...
and the loans they are taking out will end up eating them alive.
>>and the loans they are taking out will end up eating them alive.<<
At least the interest rates are low. I remember the insanity of big mortgages and double-digit mortgage rates in the Carter years by late-blooming late boomers.
Big mistake. Morons. Then they will expect their parents to bail them out.
I’d believe it. Most of the “millennials” they are talking about are boarder line gen x (like me) and make solid money. We didn’t grow up with facebook, etc. Let’s see if the younger millennials are buying $500k+ homes in 3-4 years. I’d bet against (except in SF, NYC)
Wrong. You and I will bail them out. Just like last time, the people that made horrible purchasing decisions will get bailed out at the nations expense. Ugh. 800,000 houses...retarded.
It’s probably parents/family money.
This generation Xer owns three homes and would like to sell them all.
It’s the banks that get bailed out, not the homeowner.
True.
They’re skipping starter houses because there are none. Builders don’t build anything that can be described as ‘starter’.
..and then there's "Health Insurance"
I don’t think buying an $800K house is necessarily retarded, though financing one usually is.
What could go wrong?
800k isn’t even in my vocabulary lol.
Then you could move back into your parents basement. :-)
I remember when they said that about us...
These figures are probably quite distorted by the idea that builders aren’t building that many cheapo homes. I just hope these buyers are not getting adjustable loans, because while I do not expect rates to move dramatically for “a while” they *could* be a fair amount higher in say 5 years.
At least the interest rates are low.
Unfortunately, low interest rates are driving up home prices... again. When rates rise, buyers will have to lower their price ceiling. However, people that bought at the peak with a big mortgage will find themselves underwater... again.
This generation Xer owns three homes and would like to sell them all.
Curious why you want to sell. Cash out at the top?
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