Monday, May 15, 2017
Once again new owners are outpacing new renters in the housing market, something that hasn't occurred since the Great Recession. Millennials are leading the surge as first-time homebuyers which is why location is uber-important. Young buyers today seem to be more cash-strapped than their ancestors due to high student debt and slow income advancement. On the contrary, home prices are rising, faster in some locations than others. With the flexibility offered by today's technology, buyers can be mobile as they work. Millennials are being met with a competitive buying environment in a market with low inventory and plenty of competition according to Zillow Chief Economist Svenja Gudell.
Five factors were considered while comparing housing markets. These include median home values, value forecasts for equity growth, inventory, the number of listings with price cuts and the breakeven financial time horizon buying over renting.
The biggest challenge for buyers of their first home is usually the down payment. It is the key for determining how much house you can purchase and the mortgage rate. Typically the larger the down payment, the lower the monthly mortgage payment.
Making money on their investment and competition worry first time buyers the most. "Seven in 10 top markets for first-timers have lower median home values than the national average. Markets like Cleveland and Detroit make the list due to low entry prices but Orlando, Florida and Atlanta, Georgia have high inventory compared with the number of households, so less competition." Information from Diana Olick, CNBC Real Estate Reporter and John Schoen, CNBC Economics Reporter
Are you a first-time home buyer ready to move to Florida? Contact Kohan and Associates today to help you move in to your new home! 727-565-1658 or www.Suncoasthome.com