Millennial Buyers Have Arrived
After many years of experts speculating that Millennials weren’t all that interested in buying a home, they have become the largest group of homebuyers in the country. In January 2017, Millennials were responsible for 45% of all home purchase months, according to Ellie Mae.
Millennials may be ready to become homeowners, but they don’t enter the market without plenty of struggles. Their path to owning a home isn’t easy. Some of the main struggles include:
- Millennials are mainly first-time buyers competing against repeat home buyers with more leverage.
- Prices have gone up due to a shortage of home, especially starter homes falling within the budgets of first-time buyers. According to Zillow, 3% fewer homes were on the market in February 2017 and home values were up about 7% compared to a year ago.
- Bidding wars are making it harder to get an offer accepted. Many properties are receiving multiple offers above list price, especially on the lower end of the market.
Due to these struggles, Millennials may consider raising their budget, which could be dangerous. You don’t want to end up in a home you cannot afford. Patience during the home-buying process is paramount. First-time buyers need to stick to their pre-determined budget. Do your homework, figure out your budget and be first in line for the home of your dreams.