Many people have a false view of millennials. Collectively they have shown to be later bloomers than previous generations, there’s a perception out there that this is a generation less interested in owning things or settling down. In fact, millennials are buying homes and millennial home buyers are helping power the current real estate market nationwide.
The Largest Group of Buyers
A recent study published by the NAR (the 2017 Home Buyer and Seller Generational Trends study) shows that millennials currently represent the largest group of home buyers at 34 percent of the market. That is ahead of baby boomers, who represent 30 percent of buyers. This is actually the fourth year in a row where millennials make up the largest percentage of active buyers. That trend is likely to continue as more of this influential generation grow up, settle down and buy homes.
“Millennials have been fairly slow to get into the market, but we are seeing an uptick in millennial buyers this year —which is a good sign, because as home values rise, we want a wider number of people to participate in this housing recovery,” remarks Lawrence Yun, chief economist at the National Association of Realtors (NAR).
Polls by the National Association of Homebuilders (NAH) show that over 90 percent of millennials say they want to buy a home some day.
Why the Numbers Are Rising?
It’s clear this generation is already taking action. They see the rising home values and low interest rates, and they are taking advantage of this great window of opportunity to buy their first home with a mortgage they can afford. Also, it’s just natural that the older end of what we consider the millennial generation is reaching that age where buying real estate is a natural step. People are in their late 20s or early 30s, settled into careers and starting families. Wanting to buy a home is a logical desire.
One of the most important concerns by younger first-time home buyers is the monthly payments. They may not be able to put as much money down, so finding a 30-year fixed mortgage with good terms and a low interest rate is important. The good news is there are so many programs out there like FHA Loans and VA Loans for veterans that make the American Dream achievable for qualified buyers. Also, the numerous tax benefits of homeownership (as opposed to renting) are also worth considering.
A Step Toward the Future
It’s great to see anyone buy their first home and it’s exciting to know that millennials are taking more action, which is helping to continue the country’s housing recovery and will power the real estate market for years to come.
Whatever generation you belong to, the right mortgage guidance will help you make the best decisions for your financial future. To get pre-approved or to discuss your mortgage loan options, contact us at Transparent Mortgage today. Call (619) 929-0199 today.