Millennial home buyers Archives - Columbus Ohio Real Estate | Buyer's Resource Realty Services

Millennials are a Growing Force in Columbus Economy

RealSupport — Mon, 19 Feb 2018 10:19:36 +0000

In prior blog posts, we’ve discussed the strength of the Central Ohio housing market, and the Columbus economy and population growth behind it. Now let’s talk about a key demographic that positions Columbus well for the future – our young adults.

Millennial residents account for about 15.6% of the Columbus population, according to 2016 estimates by the U.S. Census Bureau. Columbus has the 8^th-highest concentration of Millennial adults in the nation, surpassing larger cities like Los Angeles, Boston and Chicago. The median age of a Columbus resident is just 35.8 years, the youngest of any U.S. metropolitan statistical area.

The “secret sauce” to our Millennial population growth is our abundance of educational institutions. The Columbus region has nearly 60 colleges and universities, attended by over 136,000 students. We have one of the highest concentrations of college students in the U.S.!

After graduation, these students find good employment opportunities right here in Columbus – we are named among the best cities for college graduates. Millennials are also drawn by our thriving cultural, recreational and entertainment offerings. Numerous articles have citied Columbus’s appeal to Millennials, naming us the “Hottest Hipster Real Estate Market” and placing our communities among the “hot spots for Millennial home buyers.”

Our youthful, well-educated population is an advantage that helps attract major employers and investors to our area. In turn, our young adults have a variety of economic opportunities available after college, and the positive momentum feeds our economic and residential growth.

Our quality of life makes Columbus a great choice for home buyers of any generation! As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Andrew Show
Broker, CEBA-M, CNE, CSP, PSA, e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services, www.buyershome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

The post Millennials are a Growing Force in Columbus Economy appeared first on Columbus Ohio Real Estate | Buyer's Resource Realty Services.

Millennials Take the Lead in Home Buying Activity

RealSupport — Thu, 09 Mar 2017 05:19:02 +0000

For years, real estate industry analysts bemoaned the apparent lack of interest Millennials had in home ownership. It seems Generation Y was merely biding its time! Millennials are now the dominant generation among all home buyers, according to a report by RISMedia. Here’s some highlights from the report!

As of January 2017, Millennial home buyers represented 84% of all closed mortgage loans. FHA loans were the most popular mortgage, accounting for 35% of all Millennial purchase loan activity.

Millennial home buyers are also coming to the table with good credit! Ellie Mae reports that the average Millennial FICO score is 724. When the credit score averages are broken down by mortgage type, the numbers are impressive:

Millennial FHA borrowers had an average FICO score of 690.
Millennials using conventional loans had an average FICO score of 748.
Millennials using VA loans had an average FICO score of 734.

All of these credit score ranges are very respectable!

Millennial home buyers also appear to be staying within their financial means. Industry data shows that while Millennial home buyers had a national median annual income of $82,000, their median home sale price was $205,000.

The one piece of data we do not have from these reports is the average down payment amount. It would be easy to speculate that low down payments could be the driver for FHA mortgage popularity among Millennial buyers.

Still, Millennials who have low down payments are not limited to FHA mortgages; conventional mortgages allow down payments as low as 3%. What’s more, conventional mortgages permit the eventual removal of monthly mortgage insurance premiums, whereas FHA loans do not!

Naturally, this poses the question: are Millennial home buyers fully aware of their mortgage options? Or are they assuming FHA loans are “right” for them based on their down payment amount, first-time buyer status or credit score?

This is another reason why working with an Exclusive Buyer Broker is always a good idea! Not only will we refer you to trustworthy mortgage lenders who will explain your options, we also counsel our Buyer-Clients about the financial aspects of various mortgage types. If we think you can do better with a different mortgage, we’ll say so!

As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

The post Millennials Take the Lead in Home Buying Activity appeared first on Columbus Ohio Real Estate | Buyer's Resource Realty Services.

First-Time Buyers are Waiting Longer to Purchase a Home

RealSupport — Thu, 20 Aug 2015 06:48:42 +0000

Recent studies by Bankrate and Zillow show that first-time home buyers are renting for about 6 years before buying a home, a trend that has been on the rise since the mid-1990’s. Prior generations of first-time buyers waited about 4.5 years to buy a home. The shortest rental period belongs to the early 1970’s, when renting for about 2.5 years was the norm.

Today’s first-time home buyers are also older than prior generations, with a median age of 32.5 to 33 years old. This has been relatively consistent since the early 1990’s. The youngest median age group of first-time buyers was 29, back in the mid-to-late 1970’s.

It’s interesting to note that mortgage interest rates were much higher back when first-time buyers entered the market earlier. There were also fewer first-time buyer loan programs and incentives during the same period. Why, then, is it now taking longer for renters to become home buyers?

One of the reasons that today’s buyers are waiting longer to enter the market, is that home prices have been gaining ground faster than incomes. The price-to-income ratio currently stands at 2.6%, meaning that homes are costing 2.6 times a buyer’s annual income. At the market peak in 2005, the ratio was even higher at 2.8%. In the mid-1980’s, the ratio was 1.9.

Another factor in delayed home ownership might be simple prudence. Millennials haven’t been in a hurry to buy a home compared to prior generations. However, when they do buy homes, they are marking larger down payments and buying homes in higher price ranges. This could indicate that young adults are making deliberate, well-planned home buying decisions that take long-term ownership into account.

Please keep in mind that national studies cannot speak for local market conditions. Home buyers in Central Ohio have excellent opportunities in the market! Columbus has been named as one of the “easiest places to buy a home” in 2015. It has also been ranked as one of the “best bets for first-time home buyers.” Columbus offers a healthy economy and an attractive quality of life, and our home prices are within reach of median incomes. See our prior blog post about Buyer’s Markets in the Columbus Metro for examples!

Another advantage to Central Ohio home buyers is the availability of Exclusive Buyer’s Brokers! As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

The post First-Time Buyers are Waiting Longer to Purchase a Home appeared first on Columbus Ohio Real Estate | Buyer's Resource Realty Services.