Prudential Real Estate Outlook Survey Reveals Optimism Amongst Young People

(This is an excerpt from an article I originally published on Seeking Alpha on Aug 17, 2013. Click here to read the entire piece.)

In the past few weeks, we have read articles and studies describing the delayed household formation of younger Americans. I covered them in “The Housing Recovery Will Proceed Even With The Changing Preferences For Living At Home” and “The Pent-Up Housing Demand Of Young People Could Support ‘Selling Seniors’.” THIS week, Prudential Real Estate released a study with a provocative title declaring that young people are “increasingly positive about real estate.” It is a short press release, and I recommend you scan it for yourself and/or review a compact infographic summarizing the results. {snip}

The overwhelming share of younger people who have a favorable or somewhat favorable attitude toward housing is an encouraging supplement to the news of young people delaying home purchases and choosing to live longer with their parents. It underlines my earlier conclusions that these delays represent pent-up demand and not entrenched hopelessness.

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30-Year Fixed Rate Mortgage Average in the U.S. Since August, 2012
30-Year Fixed Rate Mortgage Average in the U.S. Since August, 2012

Source: St. Louis Federal Reserve

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Be careful out there!

(This is an excerpt from an article I originally published on Seeking Alpha on Aug 17, 2013. Click here to read the entire piece.)

Full disclosure: no positions

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