The hot housing market continues …Where is all this money coming from?
Low interest rates, easy money, and mushrooming savings accounts have been the quick answer. But the Wall Street Journal article gave a glimpse of why the money is not slowing down. Older Americans over the age of 70 have stockpiled a record $35 Trillion. That is 157% of the GDP, more than double the proportion 30 years ago.
What are they doing with the money? For one, giving it their heirs. According to Cerulli Associates, a consulting research firm, there is $70 Trillion will be handed down through 2042 and $61 Trillion will go to their heirs. That should give Millennials and Generation Xers economic power to purchase a home even at lofty prices.
Hold on tight, this hot housing market has the fuel to continue!