Homebuyer confidence is higher than ever, and long-term renters are looking to start buying. Today I’ll talk about why that is.
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Why are homebuyers suddenly so optimistic? Right now, homebuyer confidence is at an all-time high, and there is an increasing number of renters who think that now is a good time to buy.
There are three reasons that I believe explain this phenomenon:
1. Lending guidelines are loosening up. Back in 2010 and 2011, things were a little bit harder on the buyer side to qualify for a mortgage. Now that the guidelines have opened up a bit, it has enabled more buyers to buy a home.
2. Jobs are looking good. Fewer buyers are concerned about losing their jobs. Additionally, the median household income is now 150% of what their monthly payment would be as opposed to the historical average of 125%.
3. Long-term renters are now opting to buy homes. Millennials, the generation born after 1980, have mostly opted out of homeownership up until now. Now that they’re entering the market as first-time buyers, they’re further along in their careers with higher income and more savings.
So what does all this mean for you? If you’re on the fence about buying a home, those are three things to take into consideration. It’s definitely still a good time to buy, and interest rates are low compared to historic averages.
If you’re thinking about selling a home, give us a call or send us an email. We’d love to get you scheduled for a free consultation.