Millennials Buying Into the American Dream

Millennial buyers header

Contrary to some predictions, Millennials are making owning a home a priority. While they’re buying their first home a bit later than prior generations, they’re embracing the long-term value that home ownership brings.

1) Millennials are dominating the first-time homebuyer category today.

The median age of first-time homebuyers is 31, according to a National Association of Realtors study.

2) The vast majority of Millennials think owning a home is important.

According to a Merrill Lynch study, 81% of Millennials agree that “homeownership is an important part of the American Dream.”

Percent who agree that “Homeownership is an important part of the American Dream”
American-Dream-chart

3) Most Millennials consider owning a home more sensible than renting for both financial and lifestyle reasons.

In a survey by Fannie Mae, Millennials who own a home prefer owning over renting for these reasons:

Millennials why buy

A strong local economy, rising rents and low interest rates have all helped Millennials reach the tipping point and take the plunge into the American Dream of home ownership.

Your Windermere Real Estate broker can help first-time buyers find the best home for their needs. Reach out with any questions you have, or forward this to a first-time homebuyer you know.

Local Market Update – September 2016

While homes prices were up by double-digits compared to a year ago, the market frenzy that has affected most of this year is showing some signs of moderating. With the exception of the Eastside, prices for most of the region were down from their peak. Home sales generally outpaced the same period a year ago, but a shortage of inventory continues to tip the advantage in favor of sellers.

Eastside

Click image to view full report.
Click image to view full report.

Bucking the trend of moderating prices, the Eastside saw the median home price soar 14 percent over last year to a new record high of $769,000. That eclipses the previous peak of $760,000 in May of this year. Very tight inventory in this highly desirable market was reflected in flat sales growth compared to a year ago.

King County

Click image to view full report.
Click image to view full report.

King County saw home prices moderating for the second month in a row. The median price of homes sold in August was $550,000. That represents an increase of 10 percent over last year, but a drop from the high of $570,500 in June.

Seattle

Click image to view full report.
Click image to view full report.

The median price of a single-family home in Seattle was $625,000 in August. While down from the record high of $666,500 in June, that represents a healthy 9 percent increase over the same time last year. Demand continues to exceed the supply of inventory, particularly for entry-level homes.

Snohomish County

Click image to view full report.
Click image to view full report.

Snohomish County’s August median home price of $400,000 was just shy of the record-high of $405,000 set in July. The median price here is $150,000 less than King County, making Snohomish County a more affordable option for buyers willing to trade a longer commute time for lower housing costs.

Help for Buying a Home Now

Buying Help  header

Think you can’t afford to buy a house? There are a number of programs that can help make the dream of buying a home a reality.

  • You don’t need to put 20% down. Fannie Mae and Freddie Mac have down payment requirements as low as 3%. If you’re a vet or active military, a VA loan requires no down payment.
  • Your family can help with your down payment. Fannie Mae’s HomeReady Mortgage allows a down payment of just 3%, and income from grandparents, parents, relatives, and working children can be used to help qualify for the loan.
  • You don’t need perfect credit. To qualify for an FHA loan, your credit score needs to be just 500 or higher. FHA loans allow a down payment as low as 3.5%, and that payment can come entirely from “gift funds.”
  • BIG PLUS: There are a number of down payment assistance programs in Washington State to help you finance a home and arrange a payment you can afford.

Are you ready to start looking for a home? A Windermere Real Estate broker can help you find programs that make buying a house more affordable.