With the first quarter of 2017 coming to an end recently, one startling statistic stood out when investors were analyzing the housing market. Millenni
With the first quarter of 2017 coming to an end recently, one startling statistic stood out when investors were analyzing the housing market. Millennial homebuyers rose from 30 percent to 35 percent. At this rate, the millennial home buying population could hit the 40 percent mark by 2018 (the economic norm for Gen Xers and Baby Boomers). Millennials are buying their first homes in rapid succession and the market is adapting.
How Millennials Buying Their First Homes Can Capitalize
While this 35 percent mark is an indicator of rising consumer confidence in millennials, many of these young buyers still are trying to get through pitfalls that are limiting their buying power. Heaping amounts of student debt contribute to banks unwillingness to hand out loans. Experts suggest that buyers become pre-approved before starting their housing search. By doing so, millennials buying their first homes circumvent the lending process and make their home buying experience more streamlined.
Furthermore, in order for first time millennial homebuyers to be prepared to buy a home they should prioritize their requirements and set a budget. Doing so will ensure an organized, hassle free process.
Many financial pitfalls stand in the way of historically debt-ridden millennials, but one market attribute that they can capitalize on are the low interest rates. These rates are still at 40 year lows and will increase in the near future. Savvy and financially strong millennials can cash and buy houses now while rates are low.
In 2016, the millennial demographic surpassed Baby Boomers in terms of sheer numbers. This consumer base is here to stay and will only see their home ownership levels increase in the coming years. Agents and buyers know the time to buy is now and the economy is responding well to this recent surge.