In a recently available article by opens in a new windowRealtor Magazine, Mark Fleming, Chief Economist of First American Financial Corporation, notes,
“The largest band of millennials by birth year will turn 30 in 2020, which puts them entering their prime homebuying years”.
The article continues to spell it out how millennials have significantly more opens in a new windowbuying-power compared to the generations that preceded them, making their fascination with embracing homeownership more powerful than ever,
“Millennials-the most educated generation-have the best incomes across their generational cohorts, even though salaries are adjusted for inflation.”
This mix of power and desire gets the potential to operate a vehicle positive growth in the homeownership rate heading in to the near future. In accordance with Fleming,
‘“The gap between your potential and actual homeownership in 2018 narrowed slightly because the growth in homeownership modestly exceeded the upsurge in potential demand,” he says, citing First American’s Homeownership Progress Index.
“We expect the homeownership rate to help expand close the gap with potential in the years ahead as millennials continue steadily to make important decisions, such as for example attaining an education and, later in life, engaged and getting married and having children.”’
That said, the shortage of sellable opens in a new windowinventory in the entry and mid-range levels that’s appealing to potential millennial buyers might be a contributing factor as to the reasons many millennials haven’t yet purchased a house. In accordance with another recent opens in a new windowreport citing Frank Martell, President and CEO of CoreLogic,
“Lower rates are certainly rendering it less expensive to buy homes and millennial buyers are entering the marketplace with increasing force. These positive demand drivers, which are occurring against a backdrop of persistent shortages in housing stock, will be the major drivers for higher home prices, that may likely continue steadily to rise for the near future.”
With opens in a new windowmillennials aging-up into mortgage-ready and home-buying territory, with their strong buying interest and purchasing power, this generation is poised and prepared to have positive effect on homeownership rates in the united states. Many of them simply need to look for a home they’re excited to buy in this competitive end of the marketplace.
If you’re thinking about selling, let’s connect and determine if now could be a great time for you yourself to list your home and move-up. More millennials are receiving ready to jump in to the market and join the ranks of homeownership, so demand for homes in the starter and mid-level range will still be strong.
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