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Goodbye ‘Easy Profits’: Home Sales Data Comes With Warning
Existing home sales fell a second month in March, data out Wednesday showed.
At 5.77 million, the s
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The all cash is a misnomer. If you time it right and / or have the right lender you can present cash offers while not actually having the full amount. Have made offers this way and spoken to mulitple lenders about this.
TD, so to clarify, you enter into contract without a loan contingency (financing contingency), but then ultimately close the escrow with loan proceeds + buyer cash (down payment) ? And this goes “into the record books” as All Cash based on the contract terms (…not the actual sources of funds on the closing statement) ?
Not calling you out here, just interested to know if the data is muddled by this approach in the marketplace.
The dynamics of the housing market look nothing like they did in 2006-2007 in the days of NINJA loans. The impact from higher rates to housing seems likely to be much more muted this time around as does the retrenchment in residential investment, which is typically one of the transmission mechanisms for tighter monetary policy to feed through into the economy. Moreoever, I find myself sympathetic to some of the arguments about how the housing market is enjoying a once in a century moment given the cohort of 32 year olds, plus or minus a few years, are the largest population cohort and own fewer homes than others did when they were that age, and are finally starting to buy.
Your point about the 32 year olds is a very important point. The demographics of our country are this:
Greatest Generation (born
before 1928) 1.3M
The Silent Generation (born 1928-
1945). 21.8M
The Baby Boomer Generation
(born 1946-1964). 70.7 M
Generation X (born 1965-1980). 65.0 M
The Millennial Generation (born
1981-1996). 72.3M
Generation Z (born 1997-2012). 67.0M
The delay in forming households that covid inflicted on Millennials was significant and they are not yet caught up. The other thing that I am hearing and seeing is that the Baby Boomer Generation (parents of Millennials) are front loading the transfer of their wealth to their children in order to assist with the purchase of a home.
I do not want to do this, but I might. My kids are not quite yet at that point, so I do not have to decide right now.