5 Challenging Markets for Millennials

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Across the country, buyers are competing in what has been called the “harshest market yet“—but for millennials, the competition is fiercest in higher-income metros, according to an analysis by realtor.com®:

  1. San Jose, Calif.
    List Price (Median): $1,244,000
    Millennial Income: $109,800
    Millennial Population: 14.3 percent
  1. Seattle, Wash.
    List Price (Median): $553,000
    Millennial Income: $78,300
    Millennial Population: 15.4 percent
  1. Salt Lake City, Utah
    List Price (Median): $394,000
    Millennial Income: $67,800
    Millennial Population: 15.5 percent
  1. Minneapolis, Minn.
    List Price (Median): $283,000
    Millennial Income: $73,600
    Millennial Population: 13.8 percent
  1. Omaha, Neb.
    List Price (Median): $283,000
    Millennial Income: $63,500
    Millennial Population: 13.8 percent

Across the five markets, the economies are flourishing, and Gen Y is raking in more than the average millennial, who earns $59,800 yearly.

The issue?

“Millennials want to buy, but record-low inventory is making it extremely difficult,” says Danielle Hale, chief economist for realtor.com. “Our analysis shows millennials are facing challenges in both established markets such as San Jose and Seattle, as well as more recently popular areas like Omaha and Salt Lake City.”

The dearth of inventory is a nationwide problem, but intensified in the markets ranked. According to the analysis, there are 8 percent fewer listings nationally year-over-year, but across the five markets, there are 9 percent less—and though the age of inventory nationally is down 7 percent, in the five markets, age of inventory is down by double, roughly: 13 percent.

The paradox is pronounced in San Jose and Seattle, in that there are blinding-bright employment prospects, but severely short supply. In both cities, the demand from the influx of residents, including younger workers, is exceeding what the market has to offer. Both have above-average pay, but earnings are failing to keep pace with prices—and the challenges in the top two are manifesting in Minneapolis, Omaha and Salt Lake City, where burgeoning demand is impacting inventory.

According to Hale, however, millennials are undeterred.

“Despite the difficulties, first-timers are optimistic and more than willing to weather the challenges this spring has to offer,” Hale says.

For more information, please visit www.realtor.com.

Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

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5 Challenging Markets for Millennials

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DeVita_Suzanne_60x60

Across the country, buyers are competing in what has been called the “harshest market yet“—but for millennials, the competition is fiercest in higher-income metros, according to an analysis by realtor.com®:

  1. San Jose, Calif.
    List Price (Median): $1,244,000
    Millennial Income: $109,800
    Millennial Population: 14.3 percent
  1. Seattle, Wash.
    List Price (Median): $553,000
    Millennial Income: $78,300
    Millennial Population: 15.4 percent
  1. Salt Lake City, Utah
    List Price (Median): $394,000
    Millennial Income: $67,800
    Millennial Population: 15.5 percent
  1. Minneapolis, Minn.
    List Price (Median): $283,000
    Millennial Income: $73,600
    Millennial Population: 13.8 percent
  1. Omaha, Neb.
    List Price (Median): $283,000
    Millennial Income: $63,500
    Millennial Population: 13.8 percent

Across the five markets, the economies are flourishing, and Gen Y is raking in more than the average millennial, who earns $59,800 yearly.

The issue?

“Millennials want to buy, but record-low inventory is making it extremely difficult,” says Danielle Hale, chief economist for realtor.com. “Our analysis shows millennials are facing challenges in both established markets such as San Jose and Seattle, as well as more recently popular areas like Omaha and Salt Lake City.”

The dearth of inventory is a nationwide problem, but intensified in the markets ranked. According to the analysis, there are 8 percent fewer listings nationally year-over-year, but across the five markets, there are 9 percent less—and though the age of inventory nationally is down 7 percent, in the five markets, age of inventory is down by double, roughly: 13 percent.

The paradox is pronounced in San Jose and Seattle, in that there are blinding-bright employment prospects, but severely short supply. In both cities, the demand from the influx of residents, including younger workers, is exceeding what the market has to offer. Both have above-average pay, but earnings are failing to keep pace with prices—and the challenges in the top two are manifesting in Minneapolis, Omaha and Salt Lake City, where burgeoning demand is impacting inventory.

According to Hale, however, millennials are undeterred.

“Despite the difficulties, first-timers are optimistic and more than willing to weather the challenges this spring has to offer,” Hale says.

For more information, please visit www.realtor.com.

Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

The post 5 Challenging Markets for Millennials appeared first on RISMedia.

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$369,900 :: 6460 Orion Rd, Rochester Hills MI, 48306

Property Photo

4 beds, 3 baths
Home size: 3,184 sq ft
Lot Size: 20,037 sq ft
Added: 04/27/18, Last Updated: 04/28/18
Property Type: Single Family
MLS Number: 31345878
Community: Rochester Hills (63151)
Tract: Avon Hills 1
Status: Active

Close to town & trails! Spacious custom built home is located on large lot. City water & sewer. Covered front porch views mature trees, huge deck off eating area. LR & FR each with gas FP + formal DR. Great flr plan for family or entertaining. Upper bonus room can be 5th BR. Bmst is partially finished with loads of storage. Corner lot so lots of extra street parking. 3+ side entry garage offers extra area for workshop. Wood trim and moldings and some hardwood. Imm. possession & includes all appliances. Fence is allowed in rear yard, great for kids and pets. Rochester Schools!

Listed with Weichert Realtors Excel


Brought to you by Janet Hull and Thomas Bush, Real Estate One, Inc.. Call me today at 1-855-Janet-Tom, or visit my website at www.JanetandThomas.com!


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$369,900 :: 6460 ORION RD, ROCHESTER HILLS MI, 48306

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Property Photo

4 beds, 2.1 baths
Home size: 3,184 sq ft
Lot Size: 20,037 sq ft
Added: 04/28/18, Last Updated: 04/28/18
Property Type: Single Family
MLS Number: 58031345878
Community: Rochester Hills
Tract: AVON HILLS 1
Status: Active

Close to town & trails! Spacious custom built home is located on large lot. City water & sewer. Covered front porch views mature trees, huge deck off eating area. LR & FR each with gas FP + formal DR. Great flr plan for family or entertaining. Upper bonus room can be 5th BR. Bmst is partially finished with loads of storage. Corner lot so lots of extra street parking. 3+ side entry garage offers extra area for workshop. Wood trim and moldings and some hardwood. Imm. possession & includes all appliances. Fence is allowed in rear yard, great for kids and pets. Rochester Schools!

Listed with Weichert Realtors Excel


Brought to you by Janet Hull and Thomas Bush, Real Estate One, Inc.. Call me today at 1-855-Janet-Tom, or visit my website at www.JanetandThomas.com!


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$369,900 :: 6460 ORION RD, ROCHESTER HILLS MI, 48306

Property Photo

4 beds, 2.1 baths
Home size: 3,184 sq ft
Lot Size: 20,037 sq ft
Added: 04/28/18, Last Updated: 04/28/18
Property Type: Single Family
MLS Number: 58031345878
Community: Rochester Hills
Tract: AVON HILLS 1
Status: Active

Close to town & trails! Spacious custom built home is located on large lot. City water & sewer. Covered front porch views mature trees, huge deck off eating area. LR & FR each with gas FP + formal DR. Great flr plan for family or entertaining. Upper bonus room can be 5th BR. Bmst is partially finished with loads of storage. Corner lot so lots of extra street parking. 3+ side entry garage offers extra area for workshop. Wood trim and moldings and some hardwood. Imm. possession & includes all appliances. Fence is allowed in rear yard, great for kids and pets. Rochester Schools!

Listed with Weichert Realtors Excel


Brought to you by Janet Hull and Thomas Bush, Real Estate One, Inc.. Call me today at 1-855-Janet-Tom, or visit my website at www.JanetandThomas.com!


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$369,900 :: 6460 ORION RD, ROCHESTER HILLS MI, 48306

Thumbnail for 91716
Property Photo

4 beds, 2.1 baths
Home size: 3,184 sq ft
Lot Size: 20,037 sq ft
Added: 04/28/18, Last Updated: 04/28/18
Property Type: Single Family
MLS Number: 58031345878
Community: Rochester Hills
Tract: AVON HILLS 1
Status: Active

Close to town & trails! Spacious custom built home is located on large lot. City water & sewer. Covered front porch views mature trees, huge deck off eating area. LR & FR each with gas FP + formal DR. Great flr plan for family or entertaining. Upper bonus room can be 5th BR. Bmst is partially finished with loads of storage. Corner lot so lots of extra street parking. 3+ side entry garage offers extra area for workshop. Wood trim and moldings and some hardwood. Imm. possession & includes all appliances. Fence is allowed in rear yard, great for kids and pets. Rochester Schools!

Listed with Weichert Realtors Excel


Brought to you by Janet Hull and Thomas Bush, Real Estate One, Inc.. Call me today at 1-855-Janet-Tom, or visit my website at www.JanetandThomas.com!


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$2,499,000 :: 1930 Christenbury Court, Rochester Hills MI, 48306

Property Photo

4 beds, 4.3 baths
Home size: 5,311 sq ft
Lot Size: 50,965 sq ft
Added: 04/27/18, Last Updated: 04/27/18
Property Type: Single Family
MLS Number: 218034791
Community: Rochester Hills
Status: Active

Magnificent Custom Built Masterpiece on a private gated street. Pure Luxury from the moment you pull up to the circular, aggregate stone driveway, and beautiful brick and stone exterior, with a 5 car side entry garage. The long foyer leads you to an incredible formal dining room with space for 14 of your most personal guests. The hardwood floors throughout the first floor are meticulously cared for. 10′ ceilings and 8′ doors compliment the crown mouldings, wainscoting, and detailed trim woodwork throughout the home. The master retreat is approximately 400 sq ft, plus 2 very large walk-in-closets. The master bath includes 2 separate vanities, free standing soaker tub, large shower, marble floors and a barrel ceiling. The finished lower level includes a walkout access, finished bar, and an unbelievable temperature controlled wine room. A rear covered Loggia is an entertainer’s paradise with a built-in BBQ, retractable pull-down screens, and in-ground swimming pool for maximum enjoyment.

Listed with Arterra Realty Michigan LLC


Brought to you by Janet Hull and Thomas Bush, Real Estate One, Inc.. Call me today at 1-855-Janet-Tom, or visit my website at www.JanetandThomas.com!


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$2,499,000 :: 1930 Christenbury Court, Rochester Hills MI, 48306

Thumbnail for 91699
Property Photo

4 beds, 4.3 baths
Home size: 5,311 sq ft
Lot Size: 50,965 sq ft
Added: 04/27/18, Last Updated: 04/27/18
Property Type: Single Family
MLS Number: 218034791
Community: Rochester Hills
Status: Active

Magnificent Custom Built Masterpiece on a private gated street. Pure Luxury from the moment you pull up to the circular, aggregate stone driveway, and beautiful brick and stone exterior, with a 5 car side entry garage. The long foyer leads you to an incredible formal dining room with space for 14 of your most personal guests. The hardwood floors throughout the first floor are meticulously cared for. 10′ ceilings and 8′ doors compliment the crown mouldings, wainscoting, and detailed trim woodwork throughout the home. The master retreat is approximately 400 sq ft, plus 2 very large walk-in-closets. The master bath includes 2 separate vanities, free standing soaker tub, large shower, marble floors and a barrel ceiling. The finished lower level includes a walkout access, finished bar, and an unbelievable temperature controlled wine room. A rear covered Loggia is an entertainer’s paradise with a built-in BBQ, retractable pull-down screens, and in-ground swimming pool for maximum enjoyment.

Listed with Arterra Realty Michigan LLC


Brought to you by Janet Hull and Thomas Bush, Real Estate One, Inc.. Call me today at 1-855-Janet-Tom, or visit my website at www.JanetandThomas.com!


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$534,000 :: 4040 Norwich Ct, Rochester MI, 48306

Property Photo

4 beds, 4 baths
Home size: 3,264 sq ft
Lot Size: 22,215 sq ft
Added: 04/25/18, Last Updated: 04/26/18
Property Type: Single Family
MLS Number: 31345679
Community: Oakland Twp (63101)
Tract: Oakland Knolls
Status: Active

Beautiful family home in desirable Oakland Knolls. This one owner home highligh quality and pride of ownership throughout. Beautiful hardwood floors are impeccable, along with built-ins and newer carpet. This professionally landscaped home sits on over a half acre with nature all around, yet close to shopping and restaurants. Extras include a spacious wrap-around Trex deck, which leads to a beautiful paver patio. Has water softner(owned) even though property has city water. Fresh paint throughout.

Listed with Real Living Kee Realty


Brought to you by Janet Hull and Thomas Bush, Real Estate One, Inc.. Call me today at 1-855-Janet-Tom, or visit my website at www.JanetandThomas.com!


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Becoming a 401(k) Millionaire

(TNS)—Steve Horaney has two kids in college, a home in South Lyon, Mich., and every other excuse people can roll out for not saving for retirement.

Except he’s still one of the country’s 401(k) millionaires.

Horaney, 50, says he’s learned to sock away money with every paycheck going back to his early 20s when he started a good job at Guardian Industries in 1990. It’s worked.

“I max out my 401(k),” he says. “I always took the philosophy of paying me first and spending the rest.”

Horaney has no plans to splurge or retire immediately from his job as a vice president of Membership at the Original Equipment Suppliers Association. He’s still writing rent checks for two children who are living in apartments near the schools they attend and wants to help his children to pay down student loans.

“I don’t think I’m anywhere I need to be to retire” yet, he says.

Hitting that $1 million retirement savings mark often takes the better part of any career. There are limits to how much you can save each year in a 401(k), and there is the potential downside of brutal bear markets, like the meltdown in 2008-09.

More time can mean more money.

A 30-year-old saver who makes $40,000 a year and sets aside 11 percent of pay a year could hit $1 million in 35 years, assuming the 401(k) plan includes an employer match, the investor gets a 7 percent annual return on investments and a 2 percent annual salary increase, according to a retirement calculator at Bankrate.com.

Investors received quite a boost, of course, as the Dow Jones industrial average posted one record after another in 2017. Wall Street has been on a bull market run for nine years.

Still, a million dollars? Really? Face it: The closest many will get to a million dollars is buying a lottery ticket, watching a TV game show or listening to a clever, quirky song by the Canadian group The Barenaked Ladies:

And if I had a million dollars (if I had a million dollars)
I’d buy you furniture for your house (maybe a nice chesterfield or an ottoman)
And if I had a million dollars (if I had a million dollars)
I’d buy you a K-car (a nice reliant automobile)

We’re not exactly hearing folks singing “If I had a 401(k), one day I’d have a million dollars.”

Reaching seven figures in savings is not a slam dunk for most households.

About 150,000 people had $1 million or more in their 401(k) balances at Fidelity Investments as of the fourth quarter of 2017. It’s a record number and up from 93,000 for the fourth quarter of 2016.

It’s less than 1 percent of 16 million 401(k) accounts.

The average 401(k) balance at Fidelity reached $104,300, with the average IRA balance reaching $106,000—both record highs.

Many people have far less than that in retirement savings. The median value for retirement accounts—including a mix of IRAs and 401(k)s from current and past jobs—was $60,000 in 2016, according to the Federal Reserve Board’s Survey of Consumers.

Savers who reach the millionaire milestone tend to set aside money consistently, not run scared in a down market and avoid taking out loans from their 401(k) plans. It helps to have steady, fairly good-paying work, work at a large company with a generous matching contribution into that 401(k) and time to build up to millionaire status.

Perhaps not surprisingly, the typical 401(k) millionaire is around 58 years old on average, according to Fidelity’s data as of the third quarter 2017.

On average, savers are setting aside 14.8 percent of pay, while their employers are matching 9 percent, according to Fidelity.

“They tend to save a lot in their 401(k)s,” says Jeanne Thompson, senior vice president of Fidelity Investments, the country’s largest administrator of 401(k) plans.

“The key is to start saving as early as you can,” Thompson says.

The split was roughly 79 percent men and 21 percent women at the end of last year. Saving earlier in the game means you’re not stuck trying to save thousands of dollars a month to try to reach $1 million in your last 10 years before retirement.

The longer one contributes to a 401(k), the bigger the potential retirement nest egg.
For workers who have been contributing to their 401(k) for 10 consecutive years, the average 401(k) account balance increased to $286,700, up 22.5 percent from a year earlier, according to Fidelity.

For individuals who have been in their 401(k) plan for 15 straight years, the average balance rose to $387,100, up 21.5 percent from the fourth quarter 2016.

Some of that increase can be attributed to gradually increasing one’s contributions—including using higher catch-up limits for workers age 50 and older.

In 2018, savers who work for an employer can contribute up to $18,500 into a 401(k) as an employee—or up to $24,500 if the saver is age 50 or older.

Robert Bilkie, president of Sigma Investment Counselors, says investors who create a solid retirement nest egg and hit $1 million, like Horaney, who is a client, tend to practice “detachment and discipline.”

It takes discipline to keep saving, and one can’t get too excited when investments swing up—or fall down—dramatically in value.

“Investors in 401(k)s need to be emotionally detached from these funds,” Bilkie says. “They have to view them as assets that are virtually locked away from the outset and recognize that the value of their investments will fluctuate, sometimes painfully so.”

If you don’t dwell on the ups and downs, you can avoid making moves that could be harmful in the long run, such as shifting all your money out of stocks into cash in a panic.

“Like a scary movie, sometimes you have to just ‘look away’ from your monthly 401(k) statements,” Bilkie says.

It is, of course, tough not to panic when you live through days like February 5 when the Dow Jones industrial average lost more than 1,100 points in a day. The Dow has lost about 6.9 percent or 1,830.08 points from January 26, when it closed at a record high of 26,616.71 points through April 17. The Dow closed at 24,786.63 points April 17.

The market has been increasingly jittery in 2018, as investors have feared that President Donald Trump was launching a trade war with China. We also saw wild swings from computer-driven trading, as well as continued concerns about how high interest rates could be headed.

Yet Horaney says he’s staying the course and not worrying if he’s trending above or below that $1 million mark on any given day. He’s contributing more money now that he’s hit 50, too. Horaney doesn’t invest in individual stocks any more, partly because he had picked a few losers in the past. He has some index funds and other mutual funds.
His wife Kari is a third grade teacher at St. Patrick Catholic School in Brighton. Both do not have traditional pensions at their jobs.

The family has never dipped into his 401(k) savings for loans, and they tend not to panic and make rash moves by shifting investments in their 401(k) plan based on Wall Street’s headlines.

“With a planned retirement of 10 to 12 years away, I try not to get too worried about each swing,” Horaney says. “To be honest, I have not moved any of my savings,” referring to the most recent dips for the Dow.

“It appears that the daily swings are driven by the ‘tweets’ and they recover within a day or two. I don’t have the time or expertise to try and time the swings so I am staying the course,” Horaney says.

Horney admits that he’s been fortunate to be married to his wife for 27 years and able to keep saving for nearly 30 years.

“I have always worked hard and had a fortunate career,” Horney says. “I can’t say we have made a ton of sacrifices—just tried to live within our means.”

©2018 Detroit Free Press
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