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Laura Clark

Realtor® SF Bay Area

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Generation Rent is Ready for Home Ownership!

Millenials ready to purchaseMillennials are ready to purchase homes finally; after 10 years of declining numbers according to a University of Southern California study.  This is fantastic news for the housing market and fantastic news for millennials as they shift from renting to owning.  A certain shift from 2014 when Pew research reported that for the first time in 130 years, individuals between the ages of 25-44 were more likely to be living with their parents vs. owning a home.

One of the stunning statistics I came across reading a Bank of America study was total lack of understanding of what is actually available to millennials; their perceptions of what it took to own a home was incredible; here’s what it showed:

-30% of millennials believed they need 20% down to get a mortgage

-31% believed they needed 10% down

-Only 5% believed they needed 5%

-6% were simply unsure

That represents 72% of all millennials!  Yet most millennials that do in fact obtain a mortgage pay around 3%!

Until recent times, the factors that contributed to both the realities as well as poor perceptions of one’s ability to own a home were:

  1. Increase in Debt
  2. Unemployment rate
  3. Increase in rental costs leading to decrease in ability to save for a down payment
  4. Credit requirements after the mortgage meltdown
  5. Lower inventory of starter homes
  6. Getting married later- lack of dual incomes to go on mortgage

As I wrote in a prior blog, times are changing for the good.  It’s amazing what a positive outlook does for politicians, investors/Wallstreet, business owners and of course, the stock market.   Low down and no down payment mortgages are truly helping millennials obtain their goals

My advice to the millennials is simple: roll up your sleeves, get with someone that truly knows what they are talking about and define your point “A”.  Meaning, if you want to own a home, don’t be embarrassed about anything: what your bank account says, what your credit score is or what limitations you think you might have.  It’s important to get it all out on paper; some may find themselves in their own home right away, some very soon and for the rest, they are left with a clear path to point “B”, an exact game plan.

Next week I will reviewing interest rates and inventory; thanks for reading!

Posted in: Blog, Mortgage, Mortgages, Real Estate Tagged: Bank of America, credit score, homes, housing market, investors, Low Down No Down Payment Mortgages, marriage, millennials, purchase

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ABOUT

As a California native, born and raised in the SF Bay Area, Laura loves the Golden State for its diverse landscape, philosophies, and people. She understands the importance of home and strives to assure that individual needs are met.

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TESTIMONIALS

“Laura has a great way of connecting with people and making them feel at ease with such a big decision. You can’t go wrong with picking her as your realtor!”.

T. Henley
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CONTACT

LAURA CLARK, REALTOR®
510.410.3737
reteamclark@gmail.com

3223 Blume Drive, Richmond, CA 94806

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