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More millennials are getting ready to join the millions of people in homeownership. This could mean the demand for homes in the starter and mid-level range will continue to be healthy.
Do you own a home in one of these categories and have been thinking about moving up to the next level or your dream home? Millennials jumping into the housing market may want to purchase your current home, and your dream home can become your reality.
Mark Fleming, Chief Economist of First American Financial Corporation, stated, “The largest group of millennials by birth year will turn 30 in 2020, which puts them entering their prime homebuying years. Millennials—the most educated generation—have the highest incomes across their generational cohorts, even when salaries are adjusted for inflation.”
Millennials have more buying power than the generations that preceded them, making their interest in homeownership stronger. This could be positive towards the continuing growth rate in the real estate market.
Fleming went on to say, “We expect the homeownership rate to close the gap with potential in the years further ahead as millennials continue to make important decisions, such as attaining education and, later in life, getting married and having children.”’
Frank Martell, President, and CEO of CoreLogic, stated, about interest rates, “Lower rates are certainly making it more affordable to buy homes and millennial buyers are entering the market with increasing force. These positive demand drivers, which are occurring against a backdrop of persistent shortages in housing stock, are the major drivers for higher home prices, which will likely continue to rise for the foreseeable future.”
Millennials are ready to get into the mortgage-ready and home-buying territory with both keen buying interest and buying power. This could have a positive impact on homeownership rates in Arizona.