This is something we haven’t seen in a long time, really since before 2007. Young adults are now confidently considering their first home purchase. Many factors of the financial recession and loans, lack of employment and rising costs everywhere, kept many from being able to leave their parent’s homes after graduating college. Both rentals and first time home buying are seeing up-ticks. Rentals still remain strong, if even for the short, foreseeable future.
However, steady, albeit slow, gains in the economic and employment recovery are helping individuals and families go forward in purchasing homes. As I’ve mentioned a few times in the past week, the real estate market is seeing the narrowing of inventories and steadier price gains. As stated in the Financial Post article, More young Americans are leaving the parental nest, boosting housing recovery, Guy Berger a U.S. economist at RBS in Stamford, Connecticut says, “Given that the stock of homes available for sale is already very low, inventories alone are unlikely to meet the demand presented by these new households”. This indicates that new construction will likely rise, as well.
In addition, the New Jersey Housing & Mortgage Finance Agency reports -First-Time Homebuyer Interest Rate is just 3.50% with 0 points on a 30 year mortgage, “ ‘Housing will take a leading role. We anticipate that (inflation-adjusted) residential investment will grow 22% this year, the fastest since the early 1980s,’ economists at JPMorgan wrote in a research note”.
Given that inventories are tightening, call me to discuss finding your new home. We’ll talk about your neighborhood preferences, price ranges, what you need and who you need to talk to about securing a mortgage pre-qualification (pre-qual) and all of the necessary steps to buy your first dream home.