Wednesday, October 28, 2015

Where Millennial Home Ownership Thrives

Despite claims that millennials are just a “generation of renters,” this generation is showing itself as being just as interested in buying homes as other age groups, according to realtor.com® research.
“People who believe that millennials are disinterested in home ownership are grossly mistaken,” says Jonathan Smoke, realtor.com®’s chief economist. “This generation hit the job market during one of the largest recessions of all time, and they’ve had to work hard to establish credit and save for a down payment. With the older segment just beginning to enjoy living the life that drives home ownership—including marriage and children—now is the most appropriate time for them to consider home ownership. And that’s exactly what the latest numbers are showing.”
The financial profile of the average millennial who received a mortgage in the first half of 2015:
  • FICO score: 714
  • Down payment: 7.1%
  • Mortgage rate: 4.03%
  • Debt-to-income ratio: 36%
Source: realtor.com®
Indeed, nearly 65 percent of millennials between the ages of 21 to 34 spent time on real estate websites and apps in August, according to realtor.com®’s analysis. What’s more, “older” millennials – between the ages of 25 to 34 are 70 percent more likely than the average adult to look for a home to buy on realtor.com®.
Which markets are they targeting? Realtor.com® recently identified the top 10 areas where millennials are the most represented among mortgage borrowers – accounting for 44 to nearly 60 percent of all mortgages for home purchases.
1. Des Moines, Iowa
2. Provo, Utah
3. Baton Rouge, La.
4. Pittsburgh, Pa.
5. Lafayette, La.
6. Grand Rapids, Mich.
7. Madison, Wis.
8. Clarksville, Tenn.
9. New Orleans, La.
10. Shreveport, La.
Source: “Top 10 Markets for Millennials Seeking a Home,” realtor.com® (Sept. 30, 2015)

No comments:

Post a Comment

More Homes, Slower Price Growth – What It Means for You as a Buyer

  More Homes, Slower Price Growth – What It Means for You as a Buyer There are more homes on the market right now than there have been in ye...