[quote=SD Transplant]Another reality I caught in the media is that savings rates are low. Well, savings isn’t encouraged by our FED, the savers are punished.
– How did it work out for the folks that saved cash for a full 20% down payment for a house……not so well (specifically when looking at 2012 or 2013 data……). They will never catch up.
– Inflation……yeah, we know how that’s going . . . .[/quote]
It depends on what type of residence the (25-34 yo’s) are trying to buy. If they are focused only on the “move-up” and luxury areas, of course they will never “catch up.” If they are focused on a decent family home in a “decent” area, they will eventually have an accepted offer (perhaps even a “rehabbed flipper”) for a 90% Conv loan (with PMI) or on VA/FHA terms, necessitating much less cash at the time of closing.
“Organic sales” of SFRs in SD County are happening, folks, yes, even in the $300 – $450K range.
In past decades, this is what the 25-34 yo group bought to get their foot on the housing ladder and this is still doable today . . . that is, IF the bulk of Gen Y has the will to do it.
