Photo: Wikimedia Commons
So it turns out if you’re over 58- years-old and you’ve had a personal experience with the real estate crash, you’re more confident in the benefits of buying a home.Yes, you read that right.
The opposite is true for those of you under 58: If you or someone close to you suffered from the real estate fall-out, you’ll be less sure about the benefits of buying a home versus renting.
So in some strange turn of events, older folks feel less risk averse to the housing market, according to a study released this month by the Federal Reserve Bank of Boston.
Anat Bracha and Julian Jamison, the authors of the study, believe the difference in attitude between the older and younger who have personally experienced the market decline, connects to the fact older people see the recession as a temporary fall.
And if you see it as a temporary decline, then now is a fantastic time to buy. Many houses are worth half or less than half of what they were at the top of the market, so for bargain hunters with some cash to spend, you should consider this recession the best sale of your life.
Those with no personal experience with the crash, no matter their age, feel no attitude difference at all towards buying a home versus renting. It helps explain why the study didn’t find a connection between where people live and their confidence in the real estate market, even if they’re in a ridiculously depressed market like Nevada.
Other interesting facts the authors found include that Hispanics show stronger confidence in buying a home than whites, and those of you living in more educated neighborhoods feel greater uncertainty about the investing in the housing market. Also, women and single individuals have less confidence in home-owning than men and married couples.
The study was conducted by adding questions to the July and August editions of the Michigan consumer survey, which reaches about 2,000 Americans each month. Bracha and Jamison work for the centre for behavioural Economics.
Business Insider Emails & Alerts
Site highlights each day to your inbox.