Get Adobe Flash player

Archives

Home Purchasing

Millennials and Their Impact to the Housing Market

Have you noticed that many Millennials are slower to leave home than previous generations?

The oldest in the age group, generally considered those born between the early 1980s and the late 1990s, launched careers during the recession. Jobs were scarce, earnings were stagnant, and as a generation, they accumulated record amounts of student debt. Many simply couldn’t afford to leave home.

And that slowed household formation and demand for housing.

Millennials Housing Report

Here’s the good news: Recent economic reports show a steady shift toward more jobs and increased wage growth. Millennials may leave home soon after all.

What could that mean for the housing market? Well, as demand increases, supply could fall and prices could rise further.

And what could this mean for you?

Thinking of moving? Sellers may have a good opportunity to sell quickly and at a good price; we’re seeing this in hot markets like Oconomowoc and Brookfield. Buyers may want to shop early before prices increase more; homes are going under contract within days of being listed.

Planning to stay put? Home values will likely increase as demand increases. If so, you may rest comfortably knowing the equity in your home is growing.

If you or someone you know is considering a change, please let me know. I’ll be happy to help; contact our team.

What’s PMI and is it good?

PMI

PMI is Private Mortgage Insurance.

PMI allows you to finance a home with less than a 20% down payment. For an extra monthly cost to you, PMI provides default insurance to the lender.

Thinking of saving more to avoid PMI? Accumulating what can be tens or even hundreds of thousands of dollars for a down payment is a challenge for even the most industrious savers. Delaying a purchase while rates and prices rise may be more costly than PMI in the long run.

PMI allows you to buy what you want now vs. what could end up being far less of a home after you’ve managed to save a larger down payment later. Reach out today and see if you might be ready to buy with a little help from PMI.  Consider, too, checking out other blog posts on this topic (click here, then scroll down to see other posts) and the series of posts entitled Loan Mechanics: The Inner Workings of a Mortgage which covers MI and many other similar topics related to obtaining a mortgage.