The newest “it” generation are the Millennials, also known as the first generation to be worse than their parents. Millennials are facing an horrible employment and they were not the cause. However, they are also picking up the very worst of financial habits from their parents.
Why Millennials Are Spending More Than They Earn, And Parents Are Footing The Bill
ForbesWoman 5/18/2012 @ 4:43PM
There’s a striking disconnect with today’s Millennials that can be best described through Steve Jobs’ infamous reality distortion field: Millennial lifestyles and spending habits do not reflect their financial realities.
The majority of the 79 million U.S. Millennials are either unemployed, underpaid, or weighed down with student loans. One in four Millennials, for instance, has more debt than savings, according to Bankrate.com. Some 94% of college students currently graduate with debt. The current unemployment rate among workers ages 20-24 is 13%, compared to 8% for older workers, according to the most recent economic data.
At the same time, Millennial college students (without full-time jobs) spend $784 a month on discretionary expenses, especially food and entertainment, according to the Mooslyvania marketing agency. Millennials are the largest demographic purchasing new technological gadgets and fashion apparel. And their spending on jewelry increased 27% in 2011, according to American Express Business Insights. They even start riots at outside retail malls over $200 limited-edition Air Jordan sneakers…
Brea Overview
| Median home price is $426,000. Based on a rental parity value of $540,000, this market is under valued. |
| Monthly payment affordability has been worsening over the last 3 month(s). Momentum suggests worsening affordability. |
| Resale prices on a $/SF basis increased to $251/SF to $259/SF. |
| Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. |
| Median rental rates increased $33 last month from $2,233 to $2,266. |
| Rents have been rising for 12 month(s). Price momentum suggests rising rents over the next three months. |
| Market rating = 7 |
Proprietary OC Housing News home purchase analysis 
2559 SKYLINE Dr Brea, CA 92821
$350,000 …….. Asking Price
$244,000 ………. Purchase Price
9/15/2000 ………. Purchase Date
$106,000 ………. Gross Gain (Loss)
($19,520) ………… Commissions and Costs at 8%
============================================
$86,480 ………. Net Gain (Loss)
============================================
43.4% ………. Gross Percent Change
35.4% ………. Net Percent Change
3.1% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$350,000 …….. Asking Price
$12,250 ………… 3.5% Down FHA Financing
3.80% …………. Mortgage Interest Rate
30 ……………… Number of Years
$337,750 …….. Mortgage
$104,688 ………. Income Requirement
$1,574 ………… Monthly Mortgage Payment
$303 ………… Property Tax at 1.04%
………… Mello Roos & Special Taxes
$88 ………… Homeowners Insurance at 0.3%
$352 ………… Private Mortgage Insurance
$388 ………… Homeowners Association Fees
============================================
$2,704 ………. Monthly Cash Outlays
($240) ………. Tax Savings
($504) ………. Equity Hidden in Payment
$16 ………….. Lost Income to Down Payment
$64 ………….. Maintenance and Replacement Reserves
============================================
$2,039 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$5,000 ………… Furnishing and Move In at 1% + $1,500
$5,000 ………… Closing Costs at 1% + $1,500
$3,378 ………… Interest Points
$12,250 ………… Down Payment
============================================
$25,628 ………. Total Cash Costs
$31,200 ………. Emergency Cash Reserves
============================================
$56,828 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..
We're sorry, but it seems that we're having some problems loading MLS # P821655 from our database. Please check back soon.
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$470,000 2015 ARBOR Cir |
0.55 miles 3 bd / 2.5 ba 1,932 Sq. Ft. |
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$550,000 325 LONGBRANCH Cir |
0.6 miles 3 bd / 2.5 ba 1,934 Sq. Ft. |
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$520,000 169 WATERFALL Ln |
0.65 miles 5 bd / 3 ba 1,913 Sq. Ft. |
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$479,900 455 DOVER Cir |
0.97 miles 3 bd / 1.75 ba 1,412 Sq. Ft. |
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$419,000 3629 MOCKINGBIRD Ln |
1.06 miles 2 bd / 2 ba 1,333 Sq. Ft. |
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$524,900 563 CRAFTSMAN Cir |
1.1 miles 4 bd / 3 ba 1,890 Sq. Ft. |
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$419,900 438 CONDOR Ave |
1.12 miles 3 bd / 2 ba 1,333 Sq. Ft. |
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$429,000 3115 RAVENWOOD Ct |
1.33 miles 4 bd / 2 ba 1,407 Sq. Ft. |
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$199,000 2851 ROLLING HILLS Dr #101 |
1.54 miles 2 bd / 2 ba 1,440 Sq. Ft. |
|
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$360,000 726 CACTUS Ct |
1.57 miles 3 bd / 2 ba 1,460 Sq. Ft. |
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Despite the anecdotal reports of rising prices, the stuff that is actually closing isn’t rising as rapidly as realtors say it is
Prices Fall in April, 2-3 Bids Per Property: HousingPulse Survey
If the buzz about bidding wars is true, Campbell/Inside Mortgage Finance HousingPulse Tracking Survey reported those accounts did not boost prices in its findings.
Homes are selling below the list price, and if a home is subject to a bidding war, the high offer becomes quashed by lower appraisals. According to the report, homes sold in April received only two or three offers, and average home prices declined slightly from March to April.
For non-distressed properties, the average price declined 1.5 percent from the previous month of March, while the average price for short sales slipped 1.7 percent. For damaged REOs, the average price dropped 1.4 percent and for move-in ready REOs, the average price fell 0.3 percent.
The high share of distressed properties continued to drag prices down, according to HousingPulse statistics, which showed the average ratio for sales price to listing price stayed below 100 percent in April. For example, non-distressed properties sold for 95 percent of the list price in April – a metric that has not changed much over the past two years.
The share of distressed properties in the housing market in April was 47.9 percent using a three-month moving average. The figure marked the 26th consecutive month that the share has been above 40 percent.
The average number of offers for non-distressed properties sold in April was 1.9, according to the nationwide sample. Distressed properties received more offers, with damaged REOs averaging 3.5 offers, move-in ready REOs 3.1, and short sales 3 offers.
Even when potential homebuyers actually bid above the list price, appraisals prevented such transactions from closing.
“Yes, we are experiencing bidding wars on desirable properties, but many times the appraisals don’t come in at the [contract] price. The appraisers are keeping the [transaction] prices down even when buyers see the value and are willing to pay more,” said one real estate agent in the survey.
The HousingPulse Survey includes information from approximately 2,500 real estate agents each month.