Don’t Give Up on Buying a Home if You’re a Millennial Renter

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Almost 25% of Millennials (ages 26-41) claim they plan on renting forever according to this Apartment List article. That’s nearly double the amount since they started their ongoing survey of 31,000 Millennials in 2018.

In the grand scheme of things, 1 in 4 Millennials swearing off homeownership forever isn’t earth-shattering news. To put things in perspective, the highest rate of homeownership ever was 80% in North Dakota back in 1900. But generally speaking, the homeownership rate has hovered in the 65% range nationally for almost 5 decades. Some people will always be renters; homeownership isn’t for everyone. 

There are four main reasons they give for not buying:

• They feel it’s financially risky (19%)
• Don’t want the costs of maintaining a home (30%)
• They like the flexibility renting allows (28%)
• Can’t afford to buy a house (77%)

Obviously, by far the biggest reason is affordability. It’d be easy to chalk that up to the recent surge in home prices and rising interest rates. It’s legitimate and true. But that’s also been the main reason since well before the current market conditions. Truthfully, affordability is almost always the reason renters give for not buying, regardless of the decade. It’s never an easy financial leap to take.

However, while renting may feel like the easier, more affordable option, over time it’s not. In fact, renting is getting even more expensive. According to this Fortune article, an increasing amount of older adults are struggling to be able to pay rent. They’re constantly in fear of rent hikes that may just get to a point they can’t afford to pay. Then what?

While it’s never an easy financial leap to take, once you take the leap, your housing cost can be kept stable for years to come, and even go down as you pay off your house. Sure, it won’t be easy up front, but think of how it’ll be for you a couple of decades from now. Would you rather have an asset you can sell, or still be paying a landlord an ever-increasing amount of rent with nothing to show for it? 

Sure, prices and rates may seem high right now, but it almost always feels that way relative to the times. There’s always an area and a house you can afford to buy a house in, if you’re qualified for a mortgage. (And if you’re not, it’s worth making an effort to be qualified!) Your first house may not be everything you want or where you ideally would like to live, but it’s a first step toward taking control of being able to afford to live comfortably as you get older. It may seem years away right now, but time has a way of creeping up on you. And the cost of living does, too… 

The Takeaway:

Considering the financial burdens many Millennials have, coupled with rising interest rates and home prices, it’s no surprise that an increasing number of Millennials are saying they’ll never buy a home and remain renters forever. 

But if you can afford to rent, the chances are you can afford to buy. It might not be your dream home, or in the exact neighborhood you’d prefer, but you can buy something. Buy where (and what) you can afford now, so that you have a predictable and controllable cost of living — as well as an asset you can sell — as you grow older.

Let’s discuss your real estate goals. Jennifer Hanley, REALTOR The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2700 HanleyHomeTeam.com

Now May Be the Perfect Time to Sell Your House If You Aren’t Planning on Buying Another Home

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You’ve probably been hearing in the news lately that the real estate market is “shifting.” Well, according to this realtor.com article, many economists feel that we’ve moved from shifting into a “balanced” market. In other words, it’s not really a sellers’ market or a buyers’ market.

That may have you thinking that it’s not as favorable for sellers as it has been, and you missed out on the opportunity to get a historically high price for your house. Oddly, that isn’t the case at all.

Despite what headlines and economists may say, all signs point to it being an absolutely perfecttime to sell—especially if you don’t plan on buying another home. Consider the following data in that realtor.com article:

• Median listing prices are up 14.4% year-over-year
• New listings are down 12%
• Houses are taking 4 days longer to sell than they had been

Of those three things, the only thing slightly better for buyers is that it’s taking listings longer to sell…by four days.

While prices may be stabilizing and leveling off, the fact is, prices are still a good deal higher than they were just a year ago. One of the biggest reasons why the market was so favorable for sellers over the past few years was because there weren’t enough listings, and now there’s even 12% less competition.

That said, the market is shifting and it’s hard to say how much more of a window sellers have to capitalize on high prices and low competition. But, at least for now, there’s still an opportunity for you to sell and reap the benefits of the sellers’ market we’ve seen over the past couple of years.

The Takeaway:

The real estate market is now “balanced,” which might sound like it’s good for both buyers and sellers alike. But the reality is, it’s still more in favor of sellers, and even more so for sellers who aren’t planning on buying another home.

If you’re thinking about selling your house and either renting, moving in with family, into a retirement community, or a second home you already own, now is a good time to capitalize on the market conditions. Prices are still historically high, you’ve likely accrued quite a bit of equity in the past few years, and there are even less listings to compete with than there have been.

So, if you’ve been hesitating because the news made it sound like you missed out on the sellers’ market, you still have a window of opportunity. But it’s hard to say how long that will last.

Let’s talk about your special real estate goals. Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com