Gratefully, the nation’s housing market for 2018 is looking good, but we continue to see first-time millennial buyers struggling with affordability, especially in high-priced areas like Los Angeles, San Francisco, Boston, New York and Washington DC.
Various Florida residential real estate markets continue to be affordable markets. Interest rates and home prices are both rising, so first-time home-buyers, a majority of which are Millennials, are encouraged to make the switch from renting to owning sooner, rather than later.
Mortgage rates will inevitably rise, and this increase will only result in existing borrowers/homeowners STAYING PUT. Rising rates may also lead to homeowners seeking home improvement loans or home equity lines of credit instead of moving. Less movement in real estate, means less inventory.
So, what’s driving the housing market? Strong buyer demand, limited inventory, and first-time buyers. The first two factors being the more important for setting the real estate industry’s tone.
There is definitely a shortage of “good properties” and finding that perfect property tends to be the problem for most Millennials. That’s a large part of the reason we are recommending that Millennials try to be realistic, not have expectations of moving away from renting right into the home of their dreams. The home of their dreams will come with time, but buying something affordable is a great way to start the home-buying process
With increased demand and good appreciation, first-time home-buyers can eventually move up to the property of their dreams. This all doesn’t happen overnight and that can sometimes be frustrating for people who may be used to getting instant gratification.
So, what’s the bottom line here? Take baby steps. Buy your first home, but be realistic and find something affordable. Don’t live for your house, but live in your house. The American dream will follow, but whatever you do….STOP RENTING!
At Khani & Auerbach, we are dedicated to providing as much information to assist you in becoming a home buyer. Please be sure to follow us on Facebook, Twitter, Instagram, LinkedIn and Google+ for additional useful information.