Millennials Are Saving More Than You Think

Millennials have been stereotyped as a generation that lacks savings or money management skills. But the data isn’t backing that up.

Sixteen percent of millennials ages 23 to 37 have $100,000 or more in savings, which is double the number of young people who had that much stowed away in 2015, a newly released survey from Bank of America shows. Nearly half—or 47 percent—have $15,000 saved, up from 33 percent in 2015.

63 percent of millennials surveyed say they are saving, compared to 64 percent of Generation X and 75 percent of baby boomers. Fifty-four percent of millennials say they have a budget; 60 percent say they “feel financially secure.” The top priorities for their savings: in case of an emergency (64%), retirement (49%), and buying a house (33%).

Source: “2018 Better Money Habits Millennial Report,” Bank of America (Winter 2018) and “Millennials: 1 in 6 Now Have $100,000 Socked Away,” USA Today (Jan. 23, 2018)

First Half Review: Housing Is Doing Well!

The first half of 2016 has proven to be a boom to real estate, writes Jonathan Smoke, realtor.com®’s chief economist in his monthly column. Total home sales are up 5 percent compared to the first half of 2015 and median existing home prices are up 5 percent as of June, setting a new record. Also, a rise in equity for home owners may encourage them to consider selling.

Yet, Smoke doesn’t expect the strong market to stay this strong in the second half of the year.

“All ages have been tempted by near-record lows in mortgage rates prompted by global economic weakness and instability driving investors toward U.S. bonds,” Smoke writes in his latest column. “But even with all that demand, the market can grow only so much, because of the limited inventory of homes for sale.

“As long as [mortgage] rates do not increase substantially in a short period of time, the real estate market should remain strong,” Smoke says. “The underlying reason for higher rates is a stronger economy; so the benefits of that will offset the impact of marginally higher rates. A stronger economy, more jobs, lower unemployment, and higher wages will power demand. Higher rates will also likely help loosen credit. Those positive conditions coupled with demographic tailwinds from millennials and boomers will keep the U.S. housing market healthy and strong for at least two more years.”

Source: “Housing Had a Great First Half of 2016, But Will It Last?” realtor.com® (July 28, 2016)