While millennials, those 34 years old and younger, strive to enter the market, this generation faces unique challenges on their path to homeownership. Young, would-be buyers often have a hard time saving for a downpayment, citing student loan debt as their main financial hurdle. That, along with the challenges of tight credit, limited inventory of homes for sale and the possibility of rising interest rates, can limit the options and the ability for young people to own.
Wanting to own
However, these issues aren’t changing young buyers’ attitudes about owning a home. This generation truly appreciates the long-term benefits and economic security of homeownership. In a recent survey, 84 percent of millennials said they consider their home purchase a good financial investment.
Millennials also understand the issues currently affecting the market and know that they may have to be flexible to make owning a home a reality. Most millennials are willing to make financial sacrifices and negotiate on desired home size and location if it means they can make this significant investment in their future.
Needing real insights
For the majority of homebuyers—not only millennials—purchasing a home is the largest financial transaction of their lives, and most need guidance when it comes to navigating the complexities of a real estate transaction. Getting information from the Internet is a lot like trying to take a sip from a fire hydrant, so it is important to have an expert on hand to help interpret and understand all of this information.
In 2014, 90 percent of millennials made a smart decision to work with a real estate professional to help gain insights into everything that goes into the homebuying decision and guide them through the process. Despite the challenges, owning a home is a good financial decision. So if you are in the market to buy a home, now is a great time to start looking.