"Bank of Mom and Dad"
- Dondino Dirige - Realtor
- Mar 20, 2019
- 1 min read
Updated: Mar 26, 2019
The first day of spring is tomorrow, Wednesday March 20 and home listing season is picking up. Buyer and seller activity is increasing. For Sale signs are being installed, open house signs are on every corner, and real estate is on the mind.
An interesting article from Realtor Magazine reported that, "A new study suggests that if families were considered a financial institution, the “Bank of Mom and Dad” would be the seventh largest mortgage lender in the country."*
Yes, that is right, parents & grandparents loaned on average $39,000 of interest-free money. 1 in 5 buyers benefited from the "Bank of Mom and Dad"*. This study is helpful because it supports the anecdotal evidence that you've heard about friends or family loaning money so that their children or grandchildren can afford to buy. Saving up for a down payment is difficult for many millennials who already carry student loans, credit card debt, or are currently renting. Unsurprisingly to me, the greatest share of young adults who received financial help to buy a house were in the Pacific region (California, Washington, and Oregon all have higher than national average home prices).
Have you considered helping your kids purchase a home? Maybe you aren't interested in being the "Bank of Mom & Dad", but you still want to know how much your home has gone up in value. Call, text, email me, and let's talk this week!
Dondino Dirige
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