Many millennials are entering the housing market for the first time. If this applies to you, it is important to learn the best way to proceed. According to Danny Gardner, Freddie Mac vice president, you should be “camping out at open houses.”
With the record low interest rates, increased stability of the market, and the boom of millennials, it seems strange first-time buyers accounted for only 32 percent of the market in 2015. This number is down from 40 percent. To get past these statistics, it is essential to debunk a few myths about the market. Many buyers do not realize there are low down payment options available.
Although the purchasing numbers may seem low, millennials compromise the largest section of buyers. This group is moving to suburban areas and purchasing single-family homes. Unfortunately, affordable supplies in these locations are limited. This is causing them to search in areas they find financially feasible. Many are turning to the middle of the country, which has low priced homes and good paying jobs. Price is definitely the most important home-ownership factor for millennials.
In the future, real estate experts believe this group will be concentrated in metropolitan areas with stable economies. A majority of these homes are located throughout Virginia and Colorado. A shift is occurring with millennials who are buying cheaper properties in areas with improving economies. This group is heavily leaning toward affordable neighborhoods within “expensive” counties. If you join this trend, you may be part of the developing “hipster” subculture.