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September 2017   Volume 43, Number 9      
 

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Millennial Homebuyers Are Struggling

After many years of real estate experts lamenting how millennials weren’t interested in becoming homeowners, it turns out that many are in fact diving in. But they are facing a lot of competition. Millennials are the largest group of home buyers, according to Ellie Mae, a software company that analyzes mortgage data. In January, millennials represented roughly 45 percent of all purchase loans, an increase from 42 percent in January 2016.

“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. He added that Millennials have recently become the dominant group of users looking for homes on the website.

Millennials are also facing a tighter lending environment in comparison to a decade ago as banks stiffen up on credit requirements. However, despite the obstacles that they face, millennial buyers do have a major advantage: low interest rates.

The current lending environment is substantially different than the environment that millennials’ parents faced when they were buying homes. They had higher interest rates and down payment assistance programs were not available.

Experts recommend that first-time homebuyers do their homework by determining a budget, prioritizing their requirements, and getting pre-approved for a loan. Being first in line can make a tremendous difference in a highly competitive market.

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In this issue:

The 10 Fastest Growing Cities in the U.S.

Automation Could Eliminate Real Estate Appraisal Jobs

Life Is Great for U.S. Homesellers

Los Angeles Ranks First as Best City for Global Real Estate Investors

Millennial Homebuyers Are Struggling

Millennials More Likely to Regret Real Estate Choices

Real Estate Startup Redfin Gears Up for IPO

Zillow’s Instant Offers Program Draws Ire From Real Estate Agents

Second Homes Sales Decline as Investment Sales Increase

Nine Highly Salable Factors of Real Estate Property



 


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