Phil's Blog

• Since 2010, Hispanics have accounted for a net increase of 559,000 owner households, representing 56 percent of the total net growth of owner households in the U.S.
• The number of Hispanic households has grown from 9.2 million in 2000 to 14.7 million in 2013, an increase of 5.5 million, representing a growth rate of 60 percent.
• Four out of 10 new households between 2010 and 2020 are expected to be Hispanic.
• By the end of the decade, Hispanics alone will account for approximately five million net new households, out of an estimated 12 to 14 million net new households in the country.

• The median age of the Hispanic population is 27 years old, which is ten years younger than the median age of the overall U.S. population.
• Hispanics are heavily represented in the 26 to 46 year age range.
• A Hispanic youth turns 18 every minute of every day.

• Hispanics with incomes between $50,000 and $100,000 represent 29 percent of all Hispanic households and comprise nearly 40 percent of Hispanic purchasing power.
• Three out of every four prosperous Hispanics are under the age of 45 and own a home.
• Twenty-two percent of all Hispanic households earn more than $75,000 annually.
• The number of Hispanic-owned businesses in the U.S. nearly doubled from more than a decade ago, growing from 1.7 million in 2002 to an estimated 3.2 million in 2013.
• Latina entrepreneurs are launching businesses at a rate SIX TIMES the national average.
• Hispanic businesses contribute in excess of $465 billion to the nation’s economy annually and employ more than two million workers.
• Latinos now own one out of every 20 businesses in the U.S., while Latinas own 10 percent of all women-owned businesses.

MILLENNIALS

BABY BOOMERS

BOTH PRICES and MORTGAGE RATES are on the RISE

But current mortgage rates won’t last forever…

Benefits of Owning

Benefits of Buying Now

The American desire to own a second home as a vacation home is alive and well!

Raw Numbers

• Vacation-Home sales rose 29.7 percent to 717,000 from 553,000 in 2012
• Sales accounted for 13% of all transactions last year, up from 11% in 2012
• The median price was $168,700, compared with $150,000 in 2012, reflecting a greater number of more expensive recreational property sales in 2013
• 42% of vacation homes purchased in 2013 were distressed homes (in foreclosure or short sale)

Buyer Profile

• The typical vacation-home buyer was 43 years old
• The median household income was $85,600
• Buyers plan to own their recreational property for a median of 6 years
• 33% said they were likely to purchase another vacation home within two years
• 82% of all second-home buyers said it was a good time to buy (compared with 67% of primary residence buyers)

Reasons for Purchasing

• 87% want to use the property for vacations or as a family retreat
• 31% plan to use it as a primary residence in the future
• 28% wanted to diversify their investments or saw a good investment opportunity
• 23% plan to rent to others

Location

• 41% of vacation homes purchased last year were in the South
• 28% in the West
• 18% in the Northeast
• 14% in the Midwest

• 46% were within 100 miles
• 34% were more than 500 miles

Financing

• 38% of vacation-home buyers paid cash in 2013
• The median down payment was 30%, up from 27% in 2012

What Does This Mean to a Buyer?

• 30% - Generation X
• 30% - Boomer Generation
• 9% - Silent Generation

• 87% of recent buyers age 33 and younger said they consider their home purchase a “good financial investment”
• Millennials were most likely to have a simple desire to own a home of their own as their motive for purchasing
• The median age of recent Millennial buyers was 29
• The median income was $73,600.
• 87% purchased an existing home, and they plan to stay in their homes for a median 10 years.
• Younger buyers relied more heavily than older groups on real estate agents to help them navigate the process.