Digital Risk recently polled Millennials about the housing market. Among their findings was the fact that nearly two-thirds of the generation who have recently purchased a home, have done so with less than 20% down; with 36% putting down less than 5%!
Here is a graph detailing the results:
This means that more and more American’s between the ages of 18 and 34 stopped paying their landlord’s mortgage and started building their own family’s wealth.
Millennials aren’t the only ones taking advantage of lower down payments.
The Federal Reserve Bank of New York found that if the down payment required to purchase a home went from 20% to 5%, a renter’s Willingness To Pay (WTP) increased by 40%.
The problem is that thirty-six percent of Americans still think a 20% down payment isalways required when buying a home. Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.
If you are one of the many renters now realizing that the home of your dreams is obtainable, contact me via phone or email at 972.813.9788 or atfowler@NewAvenueRealty.com to guide you through the Dallas real estate market.
People often ask whether or not now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent.
The Census Bureau
their second quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:
At the same time, a report
“The national apartment market’s annual effective rent growth rate of 5.1% in June 2015 represented a 47-month high, and continued a streak of 5.0%-plus rent growth that is now the longest in at least six years, according to apartment market research. The effective rent growth in June 2014 was 3.7%, putting June 2015’s exceptional performance into perspective.
This is the highest rate since the 5.3% of July 2011. The metric has reached at least 5.0% for five straight months, the longest such streak since Axiometrics started monthly reporting of annual apartment data in April 2009.”
Where will rents be headed in the future?
Stephanie McCleskey, Axiometrics
vice president of research, commented on the above report in an article
by Real Estate Economy Watch
“Rent growth is just shy of the post-recession peak, and the June metrics reflect the continued strength of the apartment market. The demand for apartments is still strong, despite the record number of new units being delivered this year. Tight occupancy is why landlords can push rents higher.”
If you are ready, willing and of course able to buy, now may make sense.
July 2015 was the BEST month for my real estate career thus far. I exceed all expectations that I could possibly do. I sold $1,142,298 in real estate sales for the month of July. I have to say a special thank you to all of my clients in July 2015 but more importantly to all of my clients who have really helped take my business to the next level in 2015.
I sincerely mean it when I say thank you for supporting my business. When I purchase a closing gift it is really to say thank you because without you, New Avenue Realty WOULDN’T exist. It’s to say thanks for supporting my business. I work hard each day for you on one of the biggest transaction of your lives. Check out the homeowners that were CROWNED!!!
Ready to be Crowned?