Millennials=The Largest Percentage of New Homebuyers

According to data from the National Association of Realtors, the largest percentage of recent home-buyers are Millennials. In 2015 so far, 31% of homes have been purchased buy young adults in their early 20’s to mid 30’s. This is great news for the generation so greatly impacted by the recession. All those young adults who graduated from college in the last 8 years, with massive amounts of debt and minimal job prospects, seem to be coming into their own and getting on the bandwagon of home-ownership.

One major reason for this is that the job market is picking up again.  The unemployment rate was up over 14% for this category of job hunters a few years ago,  and now it is down to around 7.5%. The 20 somethings are getting settled into more stable careers and realizing it makes financial sense to own rather than rent, and the 30 somethings are starting to have kids and craving yards of their own.

Additionally, rising rents are making a mortgage sound pretty good to many young people. In the Boston area, the average 2-3 bedroom apartment will set you back about $3000/mo. In Attleboro and Providence, 2 bedroom apartments that were going for $900/mo a few years ago are renting for $1400/mo now. A mortgage on a condo or a small single family home in need of some TLC might be comparable or less than that, and you get to build equity and enjoy pride of ownership at the same time. Homes in the greater Boston area are appreciating steadily each year as well, making buying a smart investment.

The challenge of saving up for a downpayment is an obstacle that often keeps Millennials from taking the step into home ownership. However, Fannie Mae and Freddie Mac only require 3% down now, and there are numerous local downpayment assistance programs out there for first time low to middle income home buyers. As long as your credit is in the mid 600’s, and you have 2 years work history, you might be in a pretty good position to buy, even if you don’t have thousands in the bank. Get in touch with me if you are curious about grants or other down-payment assistance programs for first-time home buyers!

In other good news, FHA mortgage insurance premiums were just lowered, and mortgage rates remain historically low.

While inventory is scarce and bidding wars are common in areas like Boston, it is still worth it to get in the game and stop throwing money into the black hole of rent…Tough competition for real estate right now signals that more and more people are getting bit by the real estate bug. Are  you ready to be done renting and begin life in a home of your own? If you are interested in home ownership and want to know if you are in a position to buy, give me a call today at 413-834-8052!