Jan 17

Millennials Are Missing Out on Home Equity

Millennials Are Missing Out on Home Equity

Millennials Are Missing Out on Home Equity

Millennials Are Missing Out on Home Equity

The delay of millennials into home ownership will likely affect their finances for years to come. Real estate wealth has proven to be a major contributor to the financial wealth of previous generations.

Indeed, “the most impactful contributor to consumer wealth since the great financial crisis has been growth in home equity,” says Brad Friedlander, managing partner at Angel Oak Capital Advisors. “Similarly, there has been a growing wealth gap between homeowners and renters, largely due to home equity.”

U.S. homeowners captured more than $12.7 trillion in home equity by the end of the second quarter of 2016, the highest since the end of 2006, according to the Federal Reserve.

Home values have been on the rise, but renters continue to miss out. Instead, renters are faced with rental payments that are about 20 percent more than what they were in September 2010.

Younger Americans are missing out on home ownership and they’re falling behind financially than older generations, economists note.

“The last few years have been an opportunity to make equity and grow wealth, but it’s not too late for millennials,” Friedlander says.

Underwriting standards for loans are easing somewhat, which could allow more to qualify for a mortgage. Lawrence Yun, chief economist of the National Association of REALTORS®, notes that FHA loans require only 3.5 percent down – or translated to about $8,750 on a $250,000 mortgage.

Younger home buyers who welcome the idea of a “starter home,” like previous generations did, may find more opportunities to enter the market than continue to wait until they can buy their dream home, Yun says.

“Maybe they need to lower their expectations of what that first home should be or settle for a smaller home in a different neighborhood,” Yun says.

Source: “Lack of Young Home buyers Fuels Generational Wealth Gap,” USA Today (Jan. 12, 2017)

admin

For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both.

Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary.

Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that “perfect” property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently.

When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting – or exceeding – his clients’ expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame.

For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania… call Anthony DiDonato.