Baby Boomers Are Holding Up The Market
b'With Terry Story, 26-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
This week, veteran Florida real estate agent Terry Story talks about the impact of the Federal\\xa0Reserve finally raising interest rates and how this modest 0.25% increase might impact\\xa0borrowers, their ability to get mortgages, and the housing market as a whole. Fundamentally,\\xa0Terry believes rates are still \\u201cso so low\\u201d by historical standards that the rate-hike impact is\\xa0negligible. She believes mortgage interest rates would have to rise close to the 6% - 6.5% level\\xa0before there is a sizable impact on housing. Moreover, despite super low mortgage interest rates\\xa0that, if anything, should boost purchases, the housing market is currently being driven more by\\xa0supply and demand, with limited supply, shortage of inventory, fewer properties for sale and\\xa0rising property prices. Ideally, Terry wants to see rates rise a little because that might spur\\xa0buyers to jump in before rates get beyond reach.
Terry also attributes low housing inventory to baby boomers - who own about 66% of all homes\\xa0in the U.S. \\u2013 and are nearing retirement, are empty nesters but are still not downsizing their\\xa0homes because they\\u2019re waiting to re-build the home equity they lost in the 2008 downturn. Then\\xa0add their millennial children who are still staying with their baby boomer parents\\u2026 so there\\u2019s a\\xa0bottleneck in homes for sale.
Terry also talks about recent feature additions on Zillow.com with tools that can help you tweak\\xa0the value of your home based on the home improvements you\\u2019ve made, your home\\u2019s preferred\\xa0location, etc. But while this tool is nice, you really want a knowledgeable realtor who knows what\\xa0comparable properties are really selling for with upgrades and everything else.
Terry talks about what renters really look for \\u2013 not the great club houses \\u2013 but more\\xa0contemporary needs such as high-speed Internet, walk-in closets, parking spaces, sound proof\\xa0walls, in-unit washer-dryers, etc. \\u2013 and a swimming pool.
Finally, Terry talks about the value of a great credit score on your borrowing rate, with discounts\\xa0of 0.24% to 1.17% on your mortgage per 10 point increase in your credit score. So pay off your\\xa0bills on time and do all you can to boost your credit score.'