MINT HILL, NC – It seems like millennials get blamed for quite a bit and the higher home prices might fall on their shoulders, too. Some believe these buyers could fuel a housing frenzy for years. A bit part of the issue is the lack of homes for millennial buyers, which causes prices to go up due to bidding wars.
Late to the Game, but Ready to Buy
Millennials spent years trying to deal with mountains of student loan debt and the fallout from the Great Recession. While they may not have bought as early as past generations, they are now ready to become homeowners. This is part of what is currently driving the housing frenzy seen today.
With many in this generation making more money now than in the past, working from home, and having families, buying a home seems natural. Part of the issue is, there are a ton of millennials out there looking to buy and not enough homes. Plus, many are looking for larger homes since they are now working from home and spending more time in their home.
Low Inventory Drives Prices Up
It’s economics 101 with high demand and low supply that is causing higher home prices. When there is a scarcity and demand is more than the product you have, the price goes up, even with real estate. Currently, properties are getting multiple offers at a very high rate because of the lack of inventory.
While there are some signs of things slowing down or cooling off, it’s also the slower time of the year for real estate. Some experts believe that higher prices will be the norm until existing homes and new homes can catch up with demand.
A Second Housing Crisis for Millennials
The rising prices have made it unattainable for many millennials to even consider buying a home. Some are in a better position to buy, but others simply don’t have the financial resources with the higher prices.
This will only get worse if interest rates go up, but is it really the fault of millennial buyers? No.
COVID-19 changed the real estate market. With fewer new homes being built and fewer people selling homes, prices had no choice but to go up. Buyer demand stayed high enough through 2020 to drive prices to record highs in many areas. This isn’t the fault of millennials just looking to enter the market when it finally made financial sense.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger (704) 650-5707 | firstname.lastname@example.org | www.1stchoicepropertiesinc.com