First time home buyers account for nearly one third of all home purchases in the country. They play an important role in the housing market because it allows current owners to trade up or allows them to sell their homes when they retire. Millennials account for 60% of first time home shoppers or about 87 million people and are currently the largest segment of the population that are purchasing homes in the United States. 75% of millennials who purchased homes came from apartments in 2015.
The migration from apartments reflects the impact of increased rental rates over the past few years. However, median home prices also rose over 6% nationally which doesn’t seem like a lot, but actually adds up quickly, translating to a $13k increase since last year while newly built homes increased more than $35k over last year. What’s even more critical is that the Charleston area has risen at a faster pace, climbing 10% higher in some cases compared to last year. As home prices continue to rise, millennials who are delaying purchasing a home will find it more difficult in the future, especially with historically low interest rates which will eventually rise.
This winter could prove to be a pivotal one for millennials who are shopping for their first home. Inventory is not expected to grow as fast as seasonal demand this coming spring which is typically the busiest season for sellers and buyers. What that means is that it will be a sellers market where they can choose from multiple offers putting them in the drivers seat of the deal.
In October, the percentage of would-be buyers on realtor.com®saying that they intend to buy in seven to 12 months was the highest it has been all year and represented the largest time frame for purchase. Likewise, October produced the lowest percentage of would-be buyers saying they intend to buy in the next three months. In other words, people’s stated plans point to a very strong spring for home sales. -Realtor.com
Waiting until late spring to start shopping for a home could cost millennials with stricter budgets both time and money in the long run. Buying this winter or early spring rather than waiting will do several things. First it will lock in a lower interest rate. On top of that, you’ll get a more competitive sales price by bypassing the crowds avoiding bidding wars and delays during the buying process.
If you are shopping for a new home in Charleston and have questions about the buying process, would like to see a home in the area or have general questions about the Charleston real estate market, don’t hesitate to contact me: [email protected].
If you are thinking about selling your Charleston home or just have questions about the buying or selling process, contact me directly to discuss your options or visit our sister site CharlestonListing.com for free home valuation based on current market conditions in Charleston not a broad national average like Zillow or Trulia.
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Sources: Don’t Wait—Beat the Crowds and Buy This Winter – Realtor.com
Millennials are making their move in the housing market- Dallas Morning News
Number of First-Time Home Buyers – Wall Street Journal
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