You may have heard the term “crying it out” or “CIO”; if you haven’t, your Gen-X and millennial clients with young families most certainly have. But we’re not here to discuss parenting or sleep-training tips. There is a new trend in housing: increasing number of millennial and Gen-X homebuyers are now “waiting it out”.
With ever more purchase hurdles, first-time buyers hopefuls are pushing limits as to how far they are willing to go to become homeowners. Eating daily ramen noodles, delaying family formation and co-living with strangers from Airbnb are all so yesterday. The latest sacrifice? Living in a haunted house. Seriously …
Americans do not expect all home buying to come to a halt just because rates are moving higher. They recognize most will still want to pursue the American Dream of owning a home, despite higher rates being another barrier. Overall, just over half (53%) expect higher mortgage rates to lower buying demand in their local neighborhood, or to drive down buyers’ budget. Millennials, who are more price-sensitive and less averse to renting, tend to attribute more negative housing market impact to rising rates, while suburban homeowners tend to expect more muted impact in their neighborhood.
Considering a home is the most valuable asset in most American households, it’s logical to assume homeowners have strong affinity and appreciation for those who help safeguard this asset. However, a latest study shows homeowners have lukewarm opinions of their agent, with over 4 in 10 expressing unflattering or indifferent attitudes toward those who advise them on how to protect their home.
With rising home prices and mortgage rates, millennial homeowners are staying longer in their starter homes, many against their wishes to upgrade. According to the latest ValueInsured Modern Homebuyer Survey conducted in Q3 2018, 85% of all millennial starter-home owners wish to sell and upgrade to another home, but 78% are hesitant and have not made the move as they worry they could be buying high.
Ten years after the financial crisis, U.S. unemployment rate has dropped from an alarming 10% to the current level of 3.9%, a near-record low. However, the encouraging statistic may not necessarily translate to caution-free spending, at least not when it comes to buying a home. A latest survey of potential homebuyers suggests job insecurity is one of the most-cited reasons that keep Americans from pursuing the home of their dream.