Did you know? The most recent data from The Federal Reserve indicates that the average age of home buyers rose to an all-time high of 55 in 2020. Interestingly, only 31% of these buyers were first-time home buyers. This is the lowest percentage of first-time home buyers seen since 1987. With this said, millennials are the largest generation in the U.S. and they seem to be delaying home ownership as compared to their older counterparts. Of course, a low inventory of homes for sale, affordability concerns, market volatility, and rising mortgage rates are some of the main reasons for these delays.
Reasons for the delay in home ownership
- 59% of survey respondents cited saving for a down payment as the most stressful part of the home buying process
- 52% of those surveyed were delaying home buying in order to not take on new debt
- 46% of survey respondents cited accumulated credit card debt as their biggest hindrance to purchasing a home.
- 54% of survey respondents are waiting for prices to drop prior to purchasing a home
- 72% of home buyers within the past 2 years received financial assistance from their family with the down payment
- 46% of home buyers within the past 2 years are still receiving financial assistance from family members to assist with mortgage payments
Home ownership is still one of the best ways to build wealth in this country. Although it is understandable for first-time home buyers to delay a home purchase given the various challenges in the current market, it should still remain as a top goal. Younger prospective home buyers, in particular, should focus on strategies to save more money while also improving credit scores. With a sound financial plan, the goal of home ownership is likely a lot closer than it may seem.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!