In Northeast Georgia we are stricken with a terrible shortage of affordable inventory. Affordable being the key word. Working with Millennial Buyer’s we see a huge shift in what they are looking for. We are seeing these buyer’s taking Condo’s and Townhomes into consideration more than in the past. It is a combination of the shortage of Single Family homes and the rising interest rates. Apparently it is not a problem isolated to Georgia. The MReport recently had an article exploring this problem.
Home Goals Are Shifting for Millennial Borrowers
According to a new survey by Realtor.com, millennial buyers are having to adjust what they’re looking for in a home. This is more so than older buyers.
The results of the report show the following: crushing student debt & smaller down payments are combining to leave millennials especially vulnerable to an already challenging market. About 80% of respondents to the survey told Realtor.com that rising interest rates and home prices are causing them to look for smaller or less expensive homes. In some cases to search in a different neighborhood to compensate. For millennials, the percentages rise past 92.
“Existing debt and lower down payments,” said Danielle Hale, Chief Economist for Realtor.com, “won’t prevent millennials from finding and buying homes, but most will have to adapt to these challenging market conditions by adjusting their home search.”
According to the survey, rising rates have a greater effect on millennial buyers than on buyers 55 years or older. Thirty-seven percent of millennials said that they have to look for a less expensive home, compared to 24 percent of buyers 55 and older. 35% of millennials have to look in a different neighborhood, compared to 18% of those 55-plus, and 33% of millennials have to look for a smaller home, compared to 23% of boomers.
If you are ready to take the plunge contact us. Let’s explore your options and see what is available today!