Today’s home buyers are not just talking about their plans, they’re actively engaged in the buying process – and they’re serious about it. A recent report by the National Association of Home Builders (NAHB) indicates:
“…. Of American adults considering a future home purchase in the second quarter of 2020, about half(49%) are not simply planning it, they are actively engaged in the process to find a home.That is a significantly higher share than the comparable figure a year ago (41%), which suggests that the COVID-19 crisis and its accompanying record-low mortgage rates have converted some prospective buyers into active buyers.”
It’s no surprise that buyers are out in full force today. Many Americans now need more space to work from home, and the current low mortgage rates are providing an extra boost of motivation to enter the housing market.
Competition in the market is growing, especially as more millennials look to own homes. The same report also notes:
“Of Millennials planning a home purchase in the next year, 57% are already actively searching for a home.”
Odeta Kushi, Deputy Chief Economist at First American, explains:
“When breaking down house-buying power by educational attainment for millennials in 2019, we find that the higher the education, the higher the household income, and the higher the house-buying power. In 2019, median house-buying power for millennials increased 16 percent relative to 2018.”
As demand for homes to buy grows and more millennials enter the market with growing buying power, it is going to be increasingly difficult to find reasonably priced homes on the market.
Source: Keeping Current Matters
Conclusion
Today’s buyers are serious ones and millennials are helping to fuel that charge ane are starting to realize the incredible opportunity that is out there in real estate today.
Even though prices haven’t fallen, continuously decreasing interest rates and increasing incomes mean you haven’t missed the boat. If you curious how much you can afford, fill out the form below to request a consultation with one of our mortgage professionals. We would be happy to take a look at your current financial situation and prepare a detailed total cost analysis for you so you are able to wisely invest in real estate and build as much wealth as possible.
