{"id":9128,"date":"2024-02-05T12:07:13","date_gmt":"2024-02-05T18:07:13","guid":{"rendered":"https:\/\/nwfl4sale.com\/millennials-intent-on-homeownership\/"},"modified":"2024-02-05T12:07:13","modified_gmt":"2024-02-05T18:07:13","slug":"millennials-intent-on-homeownership","status":"publish","type":"post","link":"https:\/\/nwfl4sale.com\/millennials-intent-on-homeownership\/","title":{"rendered":"Millennials Intent on Homeownership"},"content":{"rendered":"
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“More than three-quarters of millennial home buyers would consider an interest rate higher than the national average of about 7%,\u201d the study found. <\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/div>\n NEW YORK \u2013 Most millennials are prepared to take drastic measures to buy a home, with 65% saying they would pay up to a 10% mortgage rate and 23% admitting they would buy at 15% or more, according to a new study from Clever Real Estate.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n A combination of high-interest rates, inflation, and stagnant wages are financially squeezing millennials, but it has not diminished their enthusiasm for homeownership.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Clever’s survey of millennial homebuyers found that today’s real estate market is tough \u2014 and even more challenging if you’re young. About 93% of millennials said the market has impacted their homebuying plans, and 76% are concerned it will worsen before they buy a home.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Raising interest rates was a strategic move to cool inflation, and it has been effective so far. The housing market has slowed, but millennials are starting to buy their first homes and feel the effects.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n About 96% of millennials said high interest rates had affected their homebuying plans. As a result, they are looking at smaller, less-expensive homes or holding off on buying altogether. Half of millennials said high interest rates are a barrier to homeownership.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Two-thirds of millennials regret not purchasing a home when rates were lower. It’s a regret that is not unique to their generation but especially poignant to buyers looking for starter homes.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Despite obstacles to homeownership, many millennials are intent on buying, and their enthusiasm knows few limits.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n More than three-quarters of millennial home buyers would consider an interest rate higher than the national average of about 7%.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Some young buyers would take additional bank-breaking measures to get the keys to a house. For their dream home, 79% of millennials would pay above the asking price, including 11% who would offer $100,000 or more above the asking price.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Millennials’ desire for homeownership remains strong, but their finances have taken a beating. A quarter of millennials have less than $10,000 in savings, and 12% have less than $1,000 saved. Additionally, 5% have no savings at all.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Most millennials carry a significant amount of debt, too. About 57% of millennials have $10,000 in debt, more than double the 25% who have $10,000 in savings.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Their shaky financial state has shaped their approach to home buying. Almost half of millennials plan to put down less than the traditional 20% on a home, and 57% plan to purchase a home that costs less than the median U.S. price of $431,000.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Millennials have had to adjust to market conditions, which hasn’t always yielded positive outcomes.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Although 35% of millennials fear making major home repairs, they have embraced fixer-uppers. Two-thirds of millennial buyers would purchase a fixer-upper, but 18% of millennial homeowners who bought one regret it.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Millennials’ idea of a fixer-upper goes well beyond a home that needs a new coat of paint. Two-thirds of millennials would buy a fixer-upper with asbestos, 62% would buy a home with mold, and 58% would buy a fixer-upper with a bad foundation.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Millennials are also open to buying a home sight unseen. About 85% of them would consider buying a home without ever touring it in person, but 13% of millennial homeowners who bought sight unseen regret their decision.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Necessary compromises in home quality, financing, or the buying process have left many millennials with remorse. A stunning 90% have regrets about their first home purchase, up from 82% in 2023. The most common regret is a bad location, followed by bad neighbors and a high-interest rate.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n In a challenging market, even the smallest advantages can be the difference between a satisfying home purchase and a disastrous one. One of the easiest ways for millennial buyers to gain a meaningful edge is to choose an experienced agent to help them navigate the local market.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cMy advice to millennials who are looking to break into the housing market is to put together a road map and plan ahead,\u201d says Adrian Alvarado, a California-based agent. \u201cMillennials should explore options with a lender to see what assistance programs are available in their area that can help cover down payments or low down payments.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Alvarado also said savvy agents can help negotiate a purchase agreement in which the seller agrees to take some of the financial burden off the buyer.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cA local Realtor may be able to get assistance with closing costs from sellers as well,\u201d Alvarado explains. \u201cHaving local knowledge can make a huge difference. The longer a home has been on the market, the more open a seller might be to negotiating.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n For millennial buyers wrestling with regrets, Alvarado recommends taking the long view and remembering where they live now won’t necessarily be where they live forever.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n He adds, \u201cThink of your first home as the springboard to your future dream home.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u00a9 Copyright \u00a9 2024, Highlands News-Sun, all rights reserved.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/div><\/div>\n <\/p>\n <\/p>\nInterest rates are an obstacle<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n
Millennials want to become homeowners at any price<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n
High hopes, low bank balances<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n
Desperate measures lead to disappointment<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n
Agents can help millennials<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/h3>\n
\n ADVERTISEMENT<\/span> <\/p>\n