Millennials make up the majority of home buyers
Posted by Brad Pauly on Thursday, April 27th, 2017 at 3:39pm.
As the spring buying season begins, several millennial first time home buyers are setting their sights on finding the dream home that's right for them. Austin is the perfect place for this, with a bustling city packed full of opportunities for those who are looking to begin their career. Surprisingly, they are not alone. Young professionals have grown rapidly to become the biggest home buyers in the US.
Millennials are a force to be reckoned with
According to The Washington Post, most millennials have rated their own financial situation as fairly good to very good. This figure is a substantial increase compared to three years ago. Millennials today are also the largest group of home buyers according to Ellie Mae. This comes as a direct contrast to several experts who have long suggested that millennials don't want to own homes.
This couldn't be farther from the truth.
As many young first time home buyers set their eyes on their dream homes, many have already established a career and have even begun to expand their families. Austin has long proven to be a booming market for college graduates who are looking to kickstart their career. In fact, Austin was listed as the 22nd best city for jobs in the US according to Wallethub. As a result, there are several options for those who are looking to establish their lives in a city that is packed with opportunity for them and their families.
Not to mention the lower interest rates that first time home buyers have available today, which allow for lower payments on a house loan over time. Compared to other generations, millennials today have easier access to credit and are able to get their home thanks to payment assistance programs.
House-hunting season will be intense
The housing market, however, is facing an interesting situation. As young professionals look forward to a housing market as first time home buyers, they are competing against repeat buyers. Repeat buyers have more experience in the market, giving them the upper hand as they bid aggressively on homes.
Homeowners are also spending more time in their homes, which often means less homes on the market. Combined with a lower amount of construction at a national scale, this means that there are less homes to buy for first time home buyers in certain markets across the US.
Here are a few things to keep in mind as you start looking for your future home to ensure that you find the best house for yourself and your family:
Will it be a forever home or a starter home?
Before you start your search, make sure to determine what purpose your new home will serve. Some people want to live in a home that they can later sell for a bigger or more expensive home. Others prefer a perfect home where they can live alongside their families for the rest of their lives.
Start your search early
Begin your search early and be on the lookout for your dream home. Most houses that have an appealing location and style are often the first to be bidded on. By keeping an eye on listings that appear throughout Austin, you'll be able to find a home that fits your budget and your style. Real estate is a competitive market in Austin and there might be more competition for your future home, but ultimately those who take the time to search will find what they want.
Have your budget in mind
While the lower interests of today might sound appealing, it's important to keep in mind that there are stiffer credit requirements as banks face a tighter lending environment. Figure out how much you are willing to pay for your home. This will provide you with a clearer idea of what houses you are able to get without having to worry about being overwhelmed with choices.
Determine the neighborhood you'll be living in
Different neighborhoods around Austin have different price tags. Keep that in mind to help adjust your budget while also ensuring that you will find a home that fits in best with your lifestyle. For example, a home near downtown or in a higher priced neighborhood might be appealing, but perhaps going for a home that's away from the hustle and bustle of the city will work better.
Your dream home is within reach
Whether you consider yourself a millennial or not, finding your first home as a first time homebuyer is something that Pauly Presley Realty in Austin can help you with. We offer a variety of homes across Austin that are sure to fit your budget and your lifestyle. Browse our listings and contact us today to be one step closer to your dream home!