Many renters are not buying homes because of a perceived lack of ability to afford the down payment or mortgage and poor credit history.
Hauppauge, NY (PRWEB) December 18, 2014
On December 18th, 2014, Emerald City Home Sales offers a reply to a CNBC article reporting that Millennials aren’t purchasing homes, even as they become more affordable.
The CNBC article, "Housing gets more affordable: Why aren't millennials buying?", published on December 9th, reports that although the housing market is getting more affordable, Millennials are choosing to rent instead. According to a recent survey conducted by Zillow and quoted in the article, on average, 15 percent of homebuyers' income goes straight to their mortgage payments. In many cases, renters will pay nearly twice this amount, states the article. These results have left many wondering why Millennials aren’t choosing to purchase homes, according to article authors Olick and Schoen.
David Brickman, executive vice president of Freddie Mac Multifamily, was quoted in the article as saying: “It’s no secret that for the last several years, consumers have felt more strapped financially, particularly renters. Many renters are not buying homes because of a perceived lack of ability to afford the down payment or mortgage and poor credit history.”
According to the article, economists believe that 2015 will be an important year with respect to home buying. Many Millennials who currently rent – whose ages in the Zillow survey ranged between 25-34 – have expressed interest in purchasing a home within the next couple of years. With interest rates at a historical low, some experts say it would be wise for Millennials who are thinking of buying a home choose to do so, according to Olick and Schoen.
Mark Gallagher, President of Hauppauge-based real estate outfit Emerald City Home Sales, comments, “During times like this it’s understandable that Millennials who rent are not opting to purchase homes. Whether it’s that they are uncomfortable with change or that they are not informed about the housing market, we feel that there is a need to open up the eyes of young renters. They could be building equity rather than sending their hard earned money to their landlord without any return.” Gallagher also mentions that right now is the best time for Millennials to purchase a home because the interest rates are at an all-time low and they are only going to rise in the near future.
About Emerald City Home Sales:
Emerald City Home Sales is one of the fastest-growing real estate agencies in North America. We pride ourselves on always being one step ahead of the competition by providing the most valuable information, services, and support to new homebuyers, real estate investors, brokers, and sellers alike. We continuously look to cultivate a customer-centric, education-based, technology-driven platform that streamlines the buying and selling of residential and commercial properties.