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July 2017   Volume 43, Number 7      
 

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Market Competition Intensifies for Millennial House-Hunters

After many years of experts lamenting how Millennials weren’t interested in becoming homeowners, it turns out that many are actually looking for homes. However, they’re facing a lot of competition.

Millennials are the largest group of homebuyers. They also represented around 45 percent of all purchase loans in January 2017, up from 42 percent a year ago, according to Ellie Mae, a software company that analyzes mortgage data.

“Millennials are mostly first-time buyers and they are competing against repeat buyers who have more buying leverage and experience,” said Javier Vivas, manager of economic research for Realtor.com. New buyers are also facing competition from buyers who started looking last year, but still haven’t found homes to buy.

A shortage of available homes has also resulted in higher prices, particularly among starter homes that tend to fall within the budgets of first-time homebuyers.

As compared to February 2016, there were 3 percent fewer homes available on the market in February, according to a recent report from Zillow, which also says home values are up nearly 7 percent. That’s led to bidding wars and intense competition among buyers, especially at the lower end of the market. Millennials are also facing a tighter lending environment compared to a decade ago. However, they do have one major advantage: low interest rates.

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In this issue:

The Best, Worst Metros for Real Estate Investors

Five States with the Highest, Lowest Cost of Living

Americans’ Confidence in Economy Reaches Post-Election Low

EB-5 Program Extended Through September 2017

Flexible Workspace Real Estate Trend Set to Take Off

Home Builders Target Millennials with Lower-Priced Homes

Housing Starts Decline 2.6 Percent in April

Luxury Real Estate Starting to Cool Off

Market Competition Intensifies for Millennial House-Hunters

How Realtors Are Using Mobile Technology



 


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