Home prices are at their all time low that many young people are pooling their resources to buy foreclosed homes. Aside from foreclosure properties, young people also find the stock market as a good place to put their money. Since March, the market rallied benefiting some young people who saw their portfolio increased three times.
The current housing market is a gold mine for young people who have good jobs. Many of them believed that now is the best time to invest their hard earned money. According to industry experts, many young people were spared from the devastating effects of the recession and foreclosure.
They said that a great number of young people were renters and did not put that much money on the stock market. They were even spared from the impact of the drop in home value and 401(k) account, adding that they are now in the position to invest their money in the housing market where prices are at their record low.
Market data showed that home prices dropped by as much as 50 percent in some areas in the country. The drop in home prices and low interest rates enticed many young people to buy foreclosed homes.
Meanwhile, the Standard and Poor's 500 stock index dropped by 34 percent from its peak in October 2007. There are also other ways that make young people benefit from the current economic situation. One is the Cash for Clunkers program which allowed them to exchange their used automobiles and purchased new cars at discounted prices.
Industry experts said that young people who have the means are taking advantage of the many ways that they could safely invest because they know that the opportunities would not last long. Market data showed a 1.5 percent drop in the Consumer Price Index for the previous 12 months. The drop in goods and services is even greater, allowing many young people to invest more in stocks and housing.
George Jaramillo, a 35-year-old business analyst, said that the current market is a great time to make some profits. Aside from low home prices and interest rates, many young people were also enticed by the $8,000 federal tax credit given to first-time homebuyers.
Young people who buy foreclosed homes for the first time accounted for 45 percent of the total home sales in July.
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