Did You Know?

DID YOU KNOW? US Baby Boomers (10,000 retiring every day) currently own 32 million homes and account for 40% of homeowners in the USA. Around the country we see a trend of empty nesters in homes much too large for their needs - and wants - selling at large discounts.....if they can find a buyer. The desire for more efficiently scaled homes on one floor closer to town keeps growing. (WSJ)
DID YOU KNOW? Design trends have shifted radically in the past decade. That means a home with crown moldings, ornate details and Mediterranean or Tuscan-style architecture can be a hard sell, while properties with clean lines and open floor plans get snapped up. Then again, in certain areas different styles have different appeal.Going against trend is often where the greatest value lies. (WSJ)
DID YOU KNOW? Future demand of US HOUSING could be in jeopardy: the rate of household formation remains consistently below its long-term trend of 1.2 million a year. The U.S. birthrate has been declining for years and presently stands at a 30-year low. The number of births in 2017 slipped to 3.85 million, the lowest since 1987. New limits on immigration into the U.S. are an issue too. The number of immigrants receiving green cards fell 5% in 2017 (to 1.127 million) from the year before with the current administration’s goal to slash legal immigration by 50%. Immigration has historically contributed more than 50% of this country’s population growth. Immigrants traditionally love buying homes, the American Dream.
DID YOU KNOW? Millennials burdened with a record $1.6 trillion in college debt and “serious delinquencies” (at least 90 days overdue or in default) topped a record $166 billion in the last quarter of 2018. (Marketwatch)
DID YOU KNOW? The 2017 Tax Act increased the after-tax cost of homeownership in regions of the country where residents face high state and local taxes. Prospective home buyers have since recalculated the cost of homeownership versus renting. This impacts pricing and demand.
DID YOU KNOW? Could interest rates surge in 2020? Some think so. The U.S. needs to lure foreign investors to fund trillion-dollar budget deficits every year for the next 10years. Global investors are already top-heavy owning dollar-denominated assets and many have begun shedding U.S. government debt from their portfolio: The percentage of U.S. federal debt held by foreigners has fallen from 53% in 2009 to 41% in 2018. Investors may demand more attractive returns to carry the risk of an excessive amount of new U.S. debt on their portfolios. The Treasury department may pay whatever rate the market demands in order to successfully unload an unprecedented volume of new debt issuances. The 10-year Treasury yield could climb over the next 18 months, and that could lift 30-year mortgage rates notably.

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The Hardesty Team are pioneers in the industry and trusted advisors with a solution driven mindset. The Hardesty Team empowers their clients, helping everyone from the first-time buyers to seasoned sellers, make better, more informed decisions.
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