Higher number of first-time homebuyers indicate selling crypto supported down payments: Redfin

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• Housing market like any other sector has also been impacted by the rapidly increasing usage of digital currencies as a mode of payment.
• With surging home prices leading to larger down payments, some buyers are finding non-traditional ways to cover the cost and compete with other bidders.
• A Redfin survey in Q4 indicated that one in nine first-time homebuyers (11.6%) surveyed said selling cryptocurrency had helped them save for a down payment.

• In the past 6-months trading, Bitcoin (BTC-USD) prices have reported 25.9% gains while Ethereum (ETH-USD) reported a 46.7% gain; (DOGE-USD) reported a 1,434% gain in the past 1-year. In November, Bitcoin peaked to its all-time high levels of $69K.
• Quick look the price comparisons of crypto currencies in past 6-months along with the iShares U.S. Real Estate ETF (NYSEARCA:IYR) and iShares Mortgage Real Estate ETF (BATS:REM):

• Millennials, who own more cryptocurrency than other generations, now account for more than half of new mortgages.

Related Info: A latest CNBC Millionaire Survey in December indicates that 83% of millennial millionaires own cryptocurrencies and plan to buy more during the next year; >50% of that investor base has half of their holdings in crypto while nearly a third have at least 75% of their total investments in blockchain-based assets.

• The survey was of 1.5K U.S. residents planning to buy or sell a home in the next 12 months, which was fielded to a representative sample of the American population and conducted by research technology company Lucid from Dec. 10 to Dec. 13, 2021.
• "How did you accumulate the money you need for a down payment?" posed to participants who indicated they were planning to buy their first home in the next year - was the focus of the survey wherein only 215 of the total responded.
• The most common response was "saved directly from paychecks" (52%), while less common answers included "cash gift from family" (12%) and "pulled money out of a retirement fund early" (10%).
• In November, the first ever commercial property in NY was put on the market for digital coin; Magnum Real Estate was selling three retail condos complete with a fully rented-out retail bottom floor in Manhattan’s upper East side for $29M — but will only accept Bitcoin.
• Real estate brokerage SERHANT believes that people have created so much crypto asset wealth that they're able to put down 50% to 70% of the purchase price using cryptocurrency. Then they'll finance the remaining amount because the remaining amount is now so small, cited by Yahoo Finance.
• Serhant predicts that within the next five years, 50% of real estate transactions in the U.S. will be done in some way, shape, and form with cryptocurrency.

Comments

[9013185412]

Imagine going to sell your ETH and see that it’s going to cost 10% in gas fees and that you owe the government 40% in taxes.

[Djreef1966]

These folks are the smart ones.

It’s time to move out of mommy’s basement.

[Smithies]

These comments are awfully cringe. You guys should take stock of the state of global debt. You would be able to conclude that no one can afford meaningfully higher rates and meaningfully lower liquidity. It is a matter of time before the Fed reverses. Money supplies must expand for a very long time in order to make the global debt load more manageable. You need Bitcoin much more than you know and there are leverage strategies (going short dollars/fiat) that can work. Read and think and then read and think more people.

[jimbo162]

@Nothanksb you may be right, any real tightening could cause panic and see markets crumble. If that happens they open the spigots back up. The world needs more liquidity, and will need more soon...not less. The once popular mantra of balanced budgets is but imaginary these days. The FED has dug quite the hole. It seems irreversible.

[Smithies]

@jimbo162 there’s nothing good about it but that’s where we are unfortunately

[bluegreen 33]

For this trend to continue, crypto will have to continue ballooning at the
same pace as the last few years.
What happens if crypto prices go flat or decline as usually happens with
stocks and bonds? But you say crypto is different from other investing
strategies. It must go parabolic forever. OK. Till the next new investing
item comes out.
If the Fed does start pulling money out of the overheated economy, life
will get very interesting for all asset classes.

[Djreef1966]

@bluegreen 33 They’ve already started declining.

Those that don’t dump this nonsense now will never make that down payment.

[ucfsurfguru]

@Djreef1966 and visit your comments a year from now. My humble opinion it is a bigger risk to not allocate a small portion on bitcoin and ethereum than to have no skin in the game at all.

[The Exception]

I see a lot of comments about borrowing against BTC. Yep....borrow more money at a risk. ......go in to more debt...... Just like the govt you all so, hypocritically, chastise.

Too funny.

[King4Coins]

The dumbest thing you could do is sell bitcoin to buy a house. Borrow against your bitcoin.

[Yoman1289]

@King4Coins Actually its probably the smartest thing you could do with bitcoin. Cant live in a blockchain

[King4Coins]

@Yoman1289 Let's see when rates are back above 4% and the first homebuyer market is in the tank if that is true. SMDH. You can keep your bitcoin and get a house too, it is not a zero sum game.

[Yoman1289]

@King4Coins Anybody with bitcoin does not have enough money for a house without selling their bitcoin lol

[kjseagle1]

nearly emptied out my coinbase crypto--to do a home remodel;; all this time made me realize a home is my storage of value, not crypto

[kjseagle1]

@kjseagle1 sold 2 SOL for my new wifi w colored lights exhaust fan and speaker from HD, for my new shower remodel... enough left over for an 18pk Corona Extra--- I'm getting some real value here, not with coinbase.

[Smithies]

@kjseagle1 did you not learn from the GFC?

[Fruit Fever]

“>50% of that investor base has half of their holdings in crypto while nearly a third have at least 75% of their total investments in blockchain-based assets”

HFS! In other words, half of millennials are positioned to have half of their investments wiped out suddenly.

[Moyosola]

Asides bitcoin everything else is just a time ticking bomb

[goodwell111]

I also like to tell story when they ask me where I got money.

[The Exception]

@goodwell111 You can tell them the sequel, too!!

How I was ignorant and lost all of my money.

[bklieb1]

These poll results:

"pulled money out of a retirement fund early" (10%).

These people are stealing from their future self.

[adam728518]

@bklieb1 values are high but the leveraged return on owner occupied real estate is pretty hard to beat.

[bklieb1]

@adam728518 it absolutely is, but I can't live off the paper value of my primary residence. I can actively withdraw from my retirement acct.

[billrla]

We'll see. For now, my crypto "investments" are experimental and speculative. I committed enough to take seriously and get on the learning curve, in case holding and transacting with crypto turns out to be an essential part of financial life.

[dlevine007]

A lot of millennials are going to get flushed out of this market. But I think long term, there is money to be made in ether, cardano and bitcoin.

[Kenny Crabstance]

Honestly good for them, if crypto can help anyone my age afford a house in this generation i salute you

[Archman Investor]

LOL....right.....LOL

The story goes from making it sound like it's a trend to basically admitting that out of the 215 people who responded maybe a couple used Crypto.....LOL

Of course it then ends w/ YouTube's #1 shill Ryan Serhant making absurd claims that in a mere 5 years 50% of all real estate transactions will be done using crypto. Yeah maybe his clientele of millionaires but certainly not the other 90% of America.

Good grief and as usual SA attempts to continue pumping.

[cryptointhewallet]

boomers created the biggest wealth transfer in the history of mankind, the only way young people can escape is crypto.

[jimbo162]

@cryptointhewallet good point, most treat bitcoin as a savings account for bigger ticket items.

[Capital Gains]

@cryptointhewallet This is what big money and institutions do not want you to know or do, they only want everyone to depend on them but reality is, if you want to be be independent, Crypto is the best way, unless born with money, very succesful at work, maybe powerball

[Long-Short Manager]

@cryptointhewallet The biggest wealth transfer in history will actually happen as boomers die and the rich ones pass their assets onto their heirs.