Millennial, Boomerang, and Multi-generational buyers are the three market segments now buying homes.
Millennials have a 32% share of the market, Boomerang buyers have a 6% share of the market and multi-generational buyers have a 13% share of the market. This doesn’t mean that buying a home for any of these buyers is easy. Each one faces a credit or financing challenge but all can overcome the obstacles if they know where to look for “special handling.”
Why should they want to move ahead with such challenges? The dream of owning a home is still a desire most have. And with rising rents, it makes more sense. It makes a lot of sense based on the recent breakdown of Florida’s top market data. Jonathan Smoke, the chief economist for realtor.com compared the cost of buying with a 20% down payment, to renting if renters invested the difference between their rental payment and a mortgage payment and earned a 5% annual return. The-Cost-of-Waiting-to-Buy_Web
In Sarasota, Florida, the penalty for waiting 1 year was $22,765 and for 3 years was $64,530. In Naples, Florida, the penalty for waiting 1 year was $22,409 and for 3 years $64,924. Yes, due to expected increases in mortgage rates and housing prices, renters who delay buying a home could end up spending considerably more according to this research. Now is the time to buy.
If you are facing challenges with getting financing for your next home or if you are a first-time home buyer the best place to start is with your local community bank. They look at customers as more than just a credit score.
I just helped a customer with a very recent bankruptcy achieve a mortgage with favorable rates because he applied with a local bank here in Sarasota, Florida. If you are someone like him or fit the scenarios mentioned give me a call. I will refer you to the lender best positioned to help you out. Susan Phelps 941-726-2227.