While buyers in their late 20s and early 30s have been fairly absent from the housing market up until now, it seems that low mortgage rates, decreased credit requirements and increasing rental rates are begin to motivate many potential Millennial buyers.
Real estate economists expected Millennials to account for 38% to 40% of real estate industry purchases as first-time purchasers, however, they’ve fallen as far as 10% below those estimates. Recent new data shows signs that the tide may be turning soon.
Redfin recently reported that first-time buyers accounted for 57% of housing tours orchestrated by real estate agents they tracked by the middle of January—the highest volume we’ve seen in the last few years. Requests for home-purchase education classes also increased significantly in January of this year compared to January of 2014—Redfin noted the increase as 27%.
Chief economist at Redfin, Nela Richardson, stated, “I think it is significant. They are sticking a toe in the water.”
If you’re a Millennial and you’ve recently begun to explore what the Boston real estate market has to offer, what’s made you take this first step? Do you feel you’re ready to purchase this winter or spring?