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As millennials are getting older and entering their careers, they are beginning to buy homes. Though entering the housing market seems to be delayed for a few of them, as per reports from Zillow, millennials are currently the leading generation of homebuyers. If you take them collectively, they are considered as later bloomers as compared to their previous generations. People perceive that this generation is not interested in settling down on their own or owning things. But, millennials are purchasing homes and millennial homebuyers are helping to power the present real estate market throughout the nation.
Millennials are the biggest group of home buyers
A recent study that was published by NAR and the Home Buyer and Seller Generational Trends of 2017 shows that millennials are currently the biggest group of buyers making up almost 35% of the entire market, compared to Baby boomers at 28%. Surprisingly to many, this is the 4th consecutive year where millennials are being counted as some of the most active buyers. And as more and more millennials settle down and begin buying new homes, this trend is expected to continue.
The chief economist of NAR or National Association of Realtors reported that, while millennials have been extremely slow in entering the market, there has been an uptick in the number of millennial buyers. This is a positive sign for the economy as with the rise in home values, there should be a larger number of people who should take part in the housing recovery process. Polls by NAH or National Association of Home-builders revealed that 90% of the millennials wish to buy a home at some point.
What is driving the numbers?
This generation is taking quick action as they are the ones who see the values of homes rising and the interest rates being lowered. They are reaping the benefits of the opportunity to purchase their first-ever home with a mortgage loan that they can afford. And as the eldest of the millennial generation is reaching that stage where it is natural to buy real estate. They are in their early 30s and late 20s and many of them are settling down with their careers and starting their families.
One of the biggest concerns for first-time homebuyers is the burden of monthly payments. They might not be able to put enough money down but VA and FHA loans could help with better and more reasonable rates.
It is great to see people buying their first homes and to know that millennials are acting faster. This is not only helping the country to continue with the recovery of the housing market, but it will also power the real estate market.
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