New and first-time homebuyers in New England face many challenges when looking to purchase their first homes. In Massachusetts, the price appreciation and high student loan debt are just a few of the main reasons, millennial homebuyers are staying out of the market.
The First Millenial Homeowners Dilemma
Millennials have to deal with ALREADY overvalued AND highly-appreciated New England real estate market (often overvalued real estate based on historical price trends and longer-term moving average). The stock market bottomed on 03/06/2009 I was there trading it was an absolute bloodbath for people.
The real estate market bottomed shortly after as the United States government orchestrated massive bailout of Bank of America after instructing them to buyout CountryWide ($4.1 billion in stock deal) and at-the-time insolvent Merrill Lynch. Most millennials are too young to remember the original “Orange Man” Angelo Mozilo the disgraced former CEO of Countrywide that has “no regrets” after DOJ decides to not pursue charges.
It is 2020 it’s an election year and stock markets will be volatile. The current situation with Iran could possibly lead to more wars in the area. We may-be setting the stage for another “Real Estate Market Crash” and “Stock Market Crash“.
This is due to the Federal Reserve’s quantitative easing policies, the ongoing economic and financial implications of the “US China Trade War“.
The truth is, the lack of affordable housing is going to make many millennials “house poor” (if they do buy a house) or simply they just will keep throwing away large percent of their income on rent.
The Second Millenial Homeowners Dilemma
DEBT. The loan amounts made to millennials by “lenders” (many loans were predatory in nature by companies like the University of Phoenix and Corinthian College) is beyond “Out of Control”. The truth is global fraud and abuse has a negative impact on price in every market from healthcare, home & auto insurance to the price of college.
Other things being equal the overbought housing market has made it much more difficult than people 10 years ago who have had their values “double”. They aren’t worth more, “our dollar is worthless” and real wage growth hasn’t remotely kept up with inflation for real estate, healthcare, food & produce.
When you combine flat-to-negative “real wage growth” with the massive amount of student loan debts (I once met a “doctor” making 75k a year with 525k in student loan debt.)
Everyone signing up to be a perpetual debt slave and hopeful beneficiary of a “student loan debt crisis bailout“. The sad truth is that if that happened it would only make things worse because the bankers come to collect. They always do.
If you’re looking at properties it’s vital you give us a call as soon as possible so we can find you the lowest possible price for your homeowner’s policy. Call us at 1-774-847-7746 today.
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