Why Aren’t Millennials Buying Homes More Frequently?
One thing we know for certain about the real estate market is that it is never going to stay the same for long. Today we want to talk about an interesting trend we’ve noticed in real estate: millennials are waiting longer to purchase their first homes than their parents did.
The typical first-time buyer now rents for an average of 6 years before buying a home, which is up from 2.6 years in the early 1970’s, according to Zillow.
Here are three reasons why:
1. Down payments are a huge factor
Renters in today’s market are struggling to save for down payments and qualify for mortgages. Most first-time buyers still depend on personal savings for at least some of their down payments, but rising rental prices have complicated the task of socking away money for a down payment.
2. Rising rental rates are complicating things as well
Rental rates are causing 46% of renters aged 25-354, to spend more than 30 percent of their incomes on rent, up from 40 percent a decade earlier.
3. Job security is important to millennial buyers
B buyers average nearly 4.5 years in their field of work and have held their current job for slightly more than three years. Those figures point to how critical career stability is to a younger generation.
Five Reasons To Buy A House In Atlanta Now
Are you considering buying a house in Atlanta? Read on to find out why we think you should buy now!
1) House values are up by about 10% since last year
This number is based on the data reported by Zillow. Home prices will be higher than they were over the past year or two. Therefore, it is crucial to know exactly how much house you can afford. We can help with that! Once you are certain about your price point, it is important to buy your dream house while you can still afford it.
2) House prices are expected to keep rising
Adding on to the previous fact, house prices are only going to continue rising. Therefore, again, it is important to buy the house that you are interested in as soon as possible. You may not be able to afford it a few months down the road.
3) Atlanta home prices are expected to rise faster than other areas
Earlier this year, a panel of over 100 economists predicted that home prices would rise by 3.65% in 2018. This number puts Atlanta above the national average. Keep in mind that these are all just predictions, however, it is wise to consider them.
4) It’s a seller’s market
As we stated in a previous blog, housing inventory is currently limited. What does this mean for you? It means that you should buy now instead of risk losing your house to another buyer.
5) Mortgage rates are expected to rise
Along with rising values and prices, mortgage rates are also expected to rise. Give us a call today to find out what rate you can be approved for!
How To Get Your Home Search Off To The Right Start
Today, I want to share some tips on how to begin the home buying process. It can be confusing, so starting off on the right foot is crucial!
One of the first things you want to do is talk with a lender. Too often, when people want to buy, they are in a big hurry to go out and look at homes; it’s an exciting time and they want to jump right in. However, it’s key to take a look at financing before you start getting excited about homes. There’s nothing worse than falling in love with a home only to find out you can’t afford it.
So, before you get out there and look at homes, don’t forget to figure out what your monthly payments are going to look like! Don’t hesitate to reach out to us. We would love to help you!