2017 is set to be a busy year for all realtors if new research by Bankrate is to be believed.
Their survey revealed that as many as one in four US adults in considering buying a home this year, which could mean 59 million of us will be trawling the Internet to find our dream home.
Looking and buying though are two very different things and it seems that external factors could play a key role in preventing many Americans achieve their dream.
Concerns over rising interest rates and house prices are likely to play their part, along with many people’s inability to save and the fact that move-in ready homes are in short supply.
Only 5.45 million existing-home sales, which include single-family home, town houses, condominiums and co-ops, were completed in 2016 – although it was the highest since 2006 (6.48m)
According to the survey “older millennials and Generation Xers”, from 27 to 52-year-olds are keen to get on the property ladder or trade up.
“They have been stymied by stagnant wages, student loans, and a lack of available starter homes,” said Holden Lewis, a mortgage analyst for Bankrate.com.
“If enough affordable homes are put on the market, we might see a surge of first-time home buyers in their early to mid-30s.”
The level of down payment is still causing major concern for want to be homeowners – who admit that as well as struggling to save there is the added concern of ongoing costs and unexpected costs associated with owning your own home.
But at least where a down payment is concerned we can help. Realtor.com revealed last month that the average deposit was not in fact 20% as many people thought.
With some lenders it was as low as 11% while with others there was an average of 23%.
If government backed schemes are an option the FHA, VA, and USDA mortgages featured average down payments of just 4.8%, 2.2%, and 0.4%, respectively.
SO the important thing is to shop around and do the maths and not just believe the stereotypes.