Millennials are no longer dominating the first-time home buyer market. They are stepping up and into their second homes as their families grow and making way for a new generation of home buyers.
In 2020, 31% of buyers were First time home buyers.
57% of the 1st time buyers were between 18-34 years old. 75% of these guyers made less than a 20% downpayment. and 49% of Gen Y or millennial buyers pushed up their plans to buy a home earlier than they intended due to Covid-19 pandemic.
What does that mean? Gen-Z are in the workforce and they are looking to buy starter homes. The large majority of these 18-24 year olds see home ownership as something to be proud of and an icon of success.
Why does it matter to you? first time buyers create a trickle-up effect in the market. Start homes are always in demand, even in recessions, they are the fastest selling segment of homes because of entry price points.
Who sells entry level homes? The sellers who are moving up and buying bigger homes, or multi-generational homes. We think that affordable housing for 1st time buyers is CRITICAL to the foundation of the US housing market.
Locally, in the Lynchburg MLS the houses under $200,000 area bit scarce. As of 2/19/2021 there were less than 75 homes on the market in the entire Lynchburg real estate market and 3 touching counties for sale. This INCLUDES townhouses and condos. Single family homes in Lynchburg city? 22 for sale. I can almost assure you that by the end of this week those will be sold.
The good news is that there will be more coming on the market between now and then. In fact, our firm will be listing 2-3 of them. But starter homes, or homes under $200k are in super high demand today.
So, to our Gen-Z buyers — a home may seem out of reach to you but it is NOT. Pursue it, make an informed decision, involve a lender, and come up wit hand aggressive plan so that you too can join the ranks of home-owners who can capitalize on the value of home ownership and living out the American Dream!