Homeownership On The Minds Of The Millennials

It's expected that in 2013, the millennials will be helping grow the housing market. Those between the ages of 18-34 may be a large part of buyers purchasing homes. Experts point to a study by Trulia.com which found that of this age group, 43 percent are already homeowners. The study also shows that 93 percent of the millennials currently renting plan to buy a home and 72 percent view owning a home as part of their personal American Dream. However, some are still sitting on the fence, waiting for lower home prices and even lower mortgage rates. But experts caution that today's very low mortgage rates won't last forever and home prices in some areas are already increasing. Whether you're a millennial or not, if you're planning to buy a home soon, here are a few tips to help you sail through your home sale.

Understand your mortgage options. A large part of why a home sale falls through has to do with the financing. Even if you have received pre-approval, that doesn't necessarily mean that the deal will close. Closing could be delayed or even rejected if you're not able to produce your required paper work in a timely fashion. Stay focused and on top of what you need by working very closely with mortgage experts. Make sure you know exactly how much cash you will need to have at the time of closing. This often is underestimated by the buyer.

Choose your home carefully. This sounds obvious but is particularly important. The way the housing market has been, many people will stay in their homes longer. So the home you buy today shouldn't be seen as an investment tool to flip quickly and make another move. Buying a home today may be the home you retire in one day. Or, at the very least, it may be a home you live in for many years. Therefore, you might consider housing that can grow with you. Never before have we seen developers offering homes that really encourage multi-generational living situations. Today, in 21 markets throughout the country, the builder, Lennar, is offering NextGen designs to answer the demand for homes that can house more than one generation of adults. These types of properties are being marketed as a “home within a home” and they're designed to give everyone enjoyable together as well as private space. Some of the plans that have about 3,500 square feet are already sold out in certain developments. The plans have separate front doors and mini kitchens, stackable washer and dryers, backyards that can be split or con-joined, plus a door that accesses the main home. The concept is becoming increasingly popular and for some multi-generational home buyers, it's a wonderful solution that allows them to get a larger home at an affordable price.

Know the markets. Some markets that were hit the hardest are now making a comeback. If you're not committed to a specific area and you have flexibility, then study various markets and understand that in certain areas you may be competing not only with other buyers seeking homes to live in but also investors. Investor interest is driving some markets more than others. Markets such as California, Nevada, Washington, and Washington D.C. are experiencing increased interest from investors seeking to buy and rent the properties. This is causing a decrease in inventory, (especially for the inexpensive houses) which drives up housing prices. The best advice when buying a home is to do your homework. Start early. Study the market. Get as much help as possible. Be flexible. Know all of your financial limitations. Finally, know what you must have and what you can live without.

Written by Phoebe Chongchua
December 21, 2012
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