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As millennials are gradually getting older and grabbing jobs, they are beginning to book their new homes. Though entering the housing market seems to be delayed for few of them, yet as per reports from Zillow, the millennials are currently the leading generation of homebuyers. There are many who hold a false opinion about the millennials. If you take them collectively, they are considered as later bloomers as compared to their previous generations. People perceive that this generation is not much interested in settling down on their own and owning things. The millennials are purchasing homes and the millennial homebuyers are helping to power the present real estate market throughout the nation.
Millennials are the biggest group of home buyers
As per a recent study that was published by NAR and the Home Buyer and Seller Generational Trends of 2017 show that millennials are currently the biggest group of buyers who are booking their new homes and they constitute almost 35% of the entire market. Baby boomers represent 28% and hence millennials have surpassed the baby boomers as well. You’ll be surprised to know that this is the 4th consecutive year where millennials are being counted as the generation of most active buyers. The trend will continue soaring when this generation keeps growing, settling down and buying new homes .
The chief economist of NAR or National Association of Realtors reported that the millennials have been extremely slow in entering the market but off late, there is an uptick in the number of buyers who belong to the millennial generation. This is indeed 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 reveal that 90% of the millennials wish to buy a home some say.
What are driving the numbers?
It’s clear that this generation is taking quick action as they are the ones who see the values of homes rising and the interest rates getting lowered down. They are reaping the benefits of the opportunity to purchase their first-ever home with a mortgage loan which they can afford. One more natural thing is that the other end of the millennial generation is reaching that stage where it is natural to buy real estate. People are in their early 30s and late 20s and they’re settling down with their careers in starting off with their families.
One of the biggest concerns for the first-time home buyers is the burden of monthly payments. They might not afford to pay enough money down and for them the VA and FHA loans could help with better and reasonable rates.
It is great to see people buying their first homes and it is pretty good to know that millennials are acting faster. This is not only helping the country to continue with the recovery of the housing market, it will also power the real estate market.