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3 in 4 Americans report their housing market has cooled

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3 in 4 Americans report their housing market has cooled

Millennial homeowners among most eager to sell before prices fall, signaling more starter homes could enter market, according to ValueInsured’s Modern Homebuyer Survey

Seventy-five percent of Americans believe their local housing market is “cooling off” – among them, 72 percent say they are not surprised – according to results from ValueInsured’s Q4 2018 Modern Homebuyer Survey, released today.

This shift in market perceptions follows five consecutive quarters where majority of Americans believed housing was overheated.  Among states with the most robust home sales activity, 22 percent of residents in California, 19 percent in Colorado, 36 percent in Texas, and 22 percent in Washington say their local market is not cooling.

The ValueInsured Housing Confidence Index registered at 63.0 on a hundred-point scale for all Americans in Q4, down 4.7 points in one year. Homeowners, historically the most confident segment on the Index, produced a score of 71.6 in Q4, the second-lowest level recorded in thirty months.

CNBC: Record low numbers of millennials think buying a home is a good investment—here's why

CNBC: Record low numbers of millennials think buying a home is a good investment—here's why

America's attitude towards home-ownership is changing. Only 48 percent of millennials (age 21-36) believe that buying a home is a good investment, according to the latest ValueInsured Modern Homebuyer Survey. That's a record low, according to the report, and a sharp contrast to the previous high of 77 percent just two years ago.

Consumer Affairs: Federal Reserve reports consumers taking on more debt

Consumer Affairs: Federal Reserve reports consumers taking on more debt

"Wealth in 2016 of the median family headed by someone born in the 1980s remained 34 percent below the level we predicted based on the experience of earlier generations at the same age," the authors write. "The corresponding shortfalls of the 1960s cohort (–11 percent as of 2016) and the 1970s cohort (–18 percent) are worrying but are much smaller than their respective 2010 and 2013 shortfalls."

The study found that the typical millennial family lost ground between 2010 and 2016, falling even further behind the typical wealth life cycle. The authors say this represents a missed opportunity because asset appreciation is unlikely to be as rapid in the near future as it was during the recent period.

Perhaps because of this trend, millennials’ view of buying a home has turned negative, according to a survey by ValueInsured. In the third quarter of this year, only 48 percent of all millennials said buying a home in America today is a good investment, a record low.

That's down from 54 percent in the second quarter. The previous high was 77 percent two years ago.

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Millennials’ View of Home Buying Turns Negative

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Millennials’ View of Home Buying Turns Negative

Millennials’ housing confidence and enthusiasm plummet to record low in latest ValueInsured Modern Homebuyer Survey

​​​​​​​DALLAS, August 15, 2018 – Millennials’ perceived value in buying a home dropped below 50 percent, down significantly from post-Brexit high, according to the latest ValueInsured quarterly Modern Homebuyer Survey

The Money Life Show - Interview with Joe Melendez

The Money Life Show - Interview with Joe Melendez

Hosted by Chuck Jaffe, Senior Columnist for MarketWatch with Joe Melendez, CEO ValueInsured

The CEO of ValueInsured, Joe Melendez, appeared on the daily talk show The Money Life Show to discuss findings from the ValueInsured Modern Homebuyer Survey.  Hosted by Senior Contributor for MarketWatch Chuck Jaffe, Joe was asked about today's homebuyers and their motivations.  

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