Home Price Increases Leave Millennials Seeking Help

Posted by Staff writer on May 06, 2016 10:06 AM EDT
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March Existing Home Sales Drop Three Percentmore big
PASADENA, CA - APRIL 23: A sign advertises a house for sale on April 23, 2009 in Pasadena, California. About half of all homes sold last month were sold to first-time homebuyers but hopes of a Spring recovery in the housing market were dampened by a report by the National Association of Realtors that existing home sales fell 3 percent in March despite near-record-low mortgage rates and home prices that are the lowest in years. The median sales price in March was $175,200, down from $200,000 a year ago. (Photo : David McNew/Getty Images)

CoreLogic, in its latest Home Price Index Report for March 2016, found that US home prices have risen both on a month to month and a year to year basis. According to a report from World Property Journal, this increase would continue and would reach 5.3 percent by March 2017.

Across the nation, home prices had increased on a year to year basis by 6.7 percent. This figure included distressed sales compared with figures from March 2015. On a month to month basis, home prices rose by 2.1 percent between February and March 2016.

This was confirmed by CoreLogic Chief Economist Dr. Frank Nothaft, who said, "Housing helped keep US economic growth afloat in the first quarter of 2016 as residential investment recorded its strongest gain since the end of 2012. Low interest rates and increased home building suggest that housing will continue to be a growth driver."

Home purchases are considered the single biggest investment for millennials and the ultimate sign of financial independence. According to a recent report from MarketWatch.com, while over half of first time homebuyers aged between 18 and 34 years consider a home purchase as an adulthood accomplishment, about 66 percent of these individuals expect some form of help from their parents in the purchase of their homes.

This was the surprising finding from a Bank of America research reported by MarketWatch. One of the areas where parents help is in the down payment needed to be made in the purchase. The help isn't just about money. About 36 percent help in the moving in, another 25 percent expect help in the choice of home, 19 percent expect help when it comes to furnishings and 15 percent would look forward to help in the monthly mortgage payments.

The Bank of America survey asked 801 people and had a margin of error in the plus or minus 3.5 percent.

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