Francis'
Silicon Valley Real Estate corner...
|
|
Posted: 24 Jul 2013 04:13 PM PDT
Student-Loan
Debt Keeps Buyers Out of the Market
As we hear that Congress struggles with the "student loans" question, it is good to put it in perspective with a few facts. I thought the article below was kind of important to keep in mind. 
The impact of student-loan debt on the nation's housing market
has real estate analysts worried due to the importance of first-time buyers
to the health of the market. Questions linger about whether the housing
recovery will be limited as deeply indebted college graduates struggle to
stabilize their finances, which means young, first-time purchasers are not
entering into homeownership at traditional rates.
§ According to the
NATIONAL ASSOCIATION OF REALTORS®, first-time buyers comprised just 28
percent of purchases in the resale market during May. For comparison,
typically these buyers make up 40 percent of purchases. The lower rate is not
surprising when one considers the statistic that college graduates on average
carry $21,402 in student loan debt, and troublingly, only 39 percent are in a
capacity to repay. Clearly, many college graduates have no choice but to
postpone the purchase of a home due to heavy debts from student loans.
§ The homeownership rate
for those individuals who are still paying off student loans is 36 percent
lower than among their peers who have no student debt, according to research
from the One Wisconsin Institute.
§ Student-loan debt will
remain a long-term issue because the average payoff time is 21 years, ranging
from 17 years for those who attended college but did not get a degree to 23
years for those with graduate degrees.
§ The country’s total
outstanding student debt has surpassed $1.1 trillion. For recent graduates,
the debt load averages just under $27,000, but an estimated 13 percent of
outstanding balances range from $54,000 to $100,000.
Read the full
story on the Los Angeles Times article from Kenneth R.
Harney, 6/28/13.
Do you have any thoughts on the subject? Feel free to chime in! Francis Silicon Valley real estate Local market: Smart graphs
Francis C. ROLLAND - Since 1985 Realtor. HEC 76. MBA - CRS
Coldwell Banker dir: 650-947-2259
 |
No comments:
Post a Comment