Young homebuyers say they are ready for their next big purchase
Many potential young homebuyers say that they are gearing up towards purchasing a home of their own. Young buyers and Millennials are reshaping the real estate market as they
are finding their dream homes on their own. The reason for the increase in young people wanting to purchase might own a home than to rent one.
Why young buyers say they are ready for their next big buy
Although most Millennials prefer renting, those that seek home ownership are looking at the bigger picture and are considering a home purchase for the following reasons.
Qualifying for a mortgage is getting easier
Long gone are the days when qualifying for a mortgage was a long, drawn out process. Although there remains a detailed set of procedures, many banks are qualifying young buyers as long as they have a 3 percent down payment for the property they are interested in.
The inventory of starter homes is increasing
Young buyers are not seeking large, expensive homes. Instead, they are looking for smaller homes that can fulfill their needs without having unnecessary space. Home builders have taken this into consideration and are creating smaller homes in less expensive communities that are more appealing to first-time and younger buyers. These starter homes are keenly priced, and they sell for approximately $120,000-$150,000, which is an excellent price range for a starter home.
The mortgage rate will increase more slowly
Mortgage rates can increase. However, studies have estimated that the increase will not be as quick as it has been in previous years. Instead, there will be a slower increase which works great for younger buyers. It is estimated that mortgage rates will increase each year by 5% or less. However, even an increase of 4-6% in the mortgage rate will only add an extra $60-$80 per month, which is still very reasonable if you take into consideration the average price of rent that a Millennial may be paying.
Young buyers are considering the benefits of having their own space to call home. Most Millennials are considering not only purchasing one home but acquiring a second home or condo for rental purposes.
|About The Author
While I am not a native Georgian, I have lived in Atlanta since 1991. I was born and raised in Brisbane, Queensland, Australia, then relocated halfway across the world when my family decided to open a business here in the United States. I have lived in the Atlanta metro area since coming to the States and know the area like the back of my hand. I have been licensed and selling Real Estate for over 15 years, and absolutely love my job! I truly enjoy working with people in the quest to sell their current home or purchase the perfect new home they´ve been dreaming of. When I first started my Real Estate career, I worked with one of the highest-producing teams at the largest real estate office in the state of Georgia. While I worked there, I was mentored by an incredible team of successful agents on the "P´s and Q´s" of real estate. It was a wonderful learning experience for me, and ultimately helped me become the dedicated, understanding, and knowledgeable agent that I am today.