We’ve heard all of this craziness about millennials making their stamp in the real estate market in a big way. It’s true. They are. But that’s not without their challenges and roadblocks. I mean, it’s not like millennials already have that down payment and reserves in place to qualify for a home loan and move right in! So, needless to say, while the millennial movement of the real estate market is trending, for at least the past couple years, it’s certainly not pushing the market where it needs to be.
But the Good News Is as 2018 Continues Forward, Millennials Will Find Their Footing in the Real Estate Market in a Big Way
So says many experts already. It just so happens that we’re at a pivotal point in the lifespan of a millennial as a professional with growing incomes that they get more and more ambitious. As we head more and more into 2018, and the real estate market continues to grow in inventory, you can expect to see this group of hungry buyers make up a respectable 43% of all home purchases by the end of 2018. That’s impressive.
That’s not bad compared to this current year’s 40%. Let that sink in. 3% goes a long way in just one year, translating to potentially thousands of new homes built and sold.
The important thing millennials need to keep in mind is to not wait. Act now. Mortgage rates will climb a bit — by about 5% — once we reach the end of 2018. This is all due to economic growth, inflation, and monetary policy normalization.
So the Bottom Line Is This: If You’re a Millennial, Don’t Sit on Your Hands
Get aggressive. One aspect of how our market’s going to grow is this: new home building. But it’s all for naught if the buyers aren’t there, and we’re counting on you, millennials, to bring the coin! You just need to sign up now with the H.O.P.E. Program and get started!
Extremely good news, don’t you think? Not that the so-called ‘bad news’ we’ve been experiencing was technically so horrible. Yes, the housing shortage was a bit of a downer for our real estate market, but as we mentioned before — it’s a typical real estate trend, completely natural, no need to panic.
The Better News Is Apparently Ambitious Home Development Will Squash That Home Shortage as Soon as the Second Half of 2018
So be patient. The first half of 2018 might be a bit challenging for prospective home buyers, but stick it out — because come June this market will see the first net inventory gain of new homes since 2015.
Look for markets in Boston, Detroit, and Nashville to get the biggest boom once that inventory comes around, and it’s all thanks to, yes, serious bullish construction wanting to propel that industry forward. Because, yes, those home builders need to make money somehow, right? Way better than constantly shuffling people around in existing homes thanks to the record housing shortage dips.
The only downside to this coming trend is that home inventory relief will only at first hit the upper tiers, making their way down the lower end. This means if you’re looking for that ideal starter home somewhere around in June, you might still have some trouble. Expect price ranges for those new homes to hit the $350K and up range, but at the very least you’ll see home prices slow down to just 3.2% each and every year.
In Other Words, If You’re Looking for the Mid-price to Starter Home, Expect the Market to Get Just a Little Harder Before It Gets Better
Thankfully, that’s really not a bad thing. That’s just how the market trends work. And the good news is this: that’s how a healthy real estate market works. Things are looking up. Which is why you really should get in on the H.O.P.E. Program right now and start working toward your dream.