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» VISIT US ONLINE @ DSNEWS.COM 43 MILLENNIALS GRAB GREATEST MARKET SHARE OF HOME PURCHASES For all the discussion in the industry surrounding Millennials and their apparent lack of presence in today's housing market, a new study from the National Association of Realtors (NAR) found they now account for the greatest market share of recent home purchases. According to the association's Home Buyer and Seller Generational Trends study for 2014, Millennials—aka "Generation Y" or "Generation Next"—comprised 31 percent of recent purchases, leading all other age groups. Following that were Generation X (defined as those born between 1965 and 1979), which made up 30 percent. NAR chief economist Lawrence Yun said the increase isn't that surprising, given that many in the younger generation are now in the peak period in which people buy their first home. "Given that Millennials are the largest generation in history after the baby boomers, it means there is a potential for strong underlying demand," Yun said. "Moreover, their aspiration and the long-term investment aspect to owning a home remain solid among young people." Indeed, about 87 percent of recent buyers age 33 and younger said they consider their home purchase a "good financial investment" compared to 80 percent of the total survey population. Millennials were also among the age groups most likely to deem a simple desire to own a home of their own as their motive for purchasing—as opposed to senior generations, who relocated due to retirement or to be closer to friends and family. Still, despite their evident interest, "the challenges of tight credit, limited inventory, eroding affordability, and high debt loads have limited the capacity of young people to own," Yun said. Out of recent Millennial homebuyers, 20 percent said they had to delay their purchase because of difficulties saving for a down payment, with 56 percent of that group pointing to student loan debt as the greatest hurdle. In purchasing characteristics, the median age of recent Millennial buyers was 29, according to NAR, while their median income was $73,600. e typical choice of homes among the group was a 1,800-square-foot house costing $180,000. Eighty-seven percent purchased an existing home, and they plan to stay in their homes for a median 10 years. When it comes to shopping, all age groups typically began by looking online at for-sale properties and then contacting a real estate agent, though NAR found Millennials are more likely to also use the Internet to find information about the buying process. When it comes time to actually buy, though, it seems there's no replacement for a human—according to the study, younger buyers relied more heavily than older groups on real estate agents to help them navigate the process. SENATE PASSES FLOOD INSURANCE BILL e United States Senate passed the Homeowner Flood Insurance Affordability Act of 2014, a bill aimed at protecting mil- lions of homeowners from being hit by huge insurance premium hikes. e bill, H.R. 3370, passed with a 72-22 vote in the Senate, after previously being passed in the House of Representatives on March 4. e current bill, which now heads to the White House, was in response to the Biggert- Waters Reform Act of 2012, which if not replaced by the current bill, would have caused hikes in insurance premiums that in some cases created insurance bills that were more than mortgage payments. President Obama is expected to sign the bill into law. Sen. Johnny Isakson (R-Georgia) said, "I am thrilled the Senate was able to come to- gether in a bipartisan manner today to protect millions of hardworking families across the country from the steep increases in their an- nual flood insurance premiums." He continued, "Today's critical action will bring relief for many Americans and Geor- gians who were facing unaffordable flood insurance premiums that could have caused them to lose their homes and see their home values plummet." Organizations in the mortgage industry also gave praise for the recently passed bill. Steve Brown, president of the National Association of Realtors (NAR), said, "As the leading advocate for home and property owners, NAR applauds this bill for the relief and protection it will bring to businesses and families nationwide, who are experiencing financial hardship because of the extreme and sudden premium increases." Homebuilders also lauded the flood insurance bill. "By providing a more affordable rate structure for policyholders and repealing point-of-sale rate increases, the bill is a boon for homeowners and homebuyers," said Kevin Kelly, chairman of the National Association of Home Builders (NAHB). The limit to average rate increase under the new Homeowner Flood Insurance Affordability Act. Source: National Association of Counties STAT INSIGHT 15%

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