Price predictions, Millennial mentality and what’s the world worth?

PRICE “BRAKE”

The September Home Price Insights (HPI) from CoreLogic says U.S. home prices rose .4% between August and September and 5.6% year-over-year. The HPI is not forecasting a price decline; however, the report predicts prices will grow slower from September to October at .6% below the previous month’s gain rate.

UP AGAIN

Mortgage interest rates rose to levels not seen since 2011 according to Freddie Mac’s Primary Mortgage Market Survey. Rates for the 30-year fixed rate mortgage rose .11 week-over-week and 1.04 year-over-year in the week ending November 7.

AFFORDABILITY OBSTACLE

Millennials are interested in homeownership, but the vast majority of that demographic views affordability as the biggest hurdle. A 2018 study by RTi Research found that 40% of Millennials are interested in buying a home now and 64% regularly monitor home prices in their area. The study noted that while 80% of Millennials plan to move within four to five years, 73% cited affordability as the biggest obstacle to buying a home. CoreLogic CEO Frank Martell confirmed RTi’s findings, saying, “Our consumer research indicates younger Millennials want to purchase homes, but the majority consider affordability a key obstacle. Less than half [of them] who are currently renting feel confident they will qualify for a mortgage.”

WORLD WORTH

Real estate could replace tea as a hyperbolic favorite to describe great value. Though there’s no established price tag for “all the tea in China,” Savills World Research found that the total value of all commercial and residential real estate in the world is $280.6 trillion dollars. Savills also found that 44% of global residential real estate value is owned by 17% of the world’s population.

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