Millennials are finally starting to enter the housing market according to a recent report by CoreLogic .
Focusing on the annual net change in household formations over the last decade (see graph below), the report shows this is the year that Millennials are finally moving out of their parents’ basements and finding a place of their own; and they are NOT all renting.
According to the National Association of Realtors’ latest Existing Home Sales Report, the percentage of first–time buyers rebounded to 32 percent in August, up from 28 percent in July and matching the highest share of the year set in May.
What has kept the others from buying a home?
Recent surveys have revealed that there are major misunderstandings as to what is required to get a mortgage in today’s lending environment. Many Americans believe you need at least a 780 FICO score and a 20% down payment.
In reality, neither is required. Here are the mortgage statistics (FICO score, % of down payment, mortgage interest rate and debt-to-income ratio) for Millennials who have completed the mortgage process in the first half of this year according to realtor.com:
As more Millennials begin to better understand the mortgage process and start their house hunting search we will see even greater numbers buying a home. If you are a first time buyer, give Jo Anne or Tony Rizza (843-301-5825) a call to better understand the Hilton Head / Bluffton real estate market and see the latest available properties.
With over 25 years of experience, let our team help you find your dream home!
Hilton Head Real Estate Partners
Partnering with you every step of the way.