30 Jun Charlotte Real Estate Realtor Review
Reports have revealed that first-time homebuyers are struggling to find their footing in today’s real estate market. However, in North Carolina, a lower cost of living and a great amount of job opportunity means that homeownership rates for millennials will likely rise faster here than in other states. Diana Carew, an Economist at the Progressive Policy Institute, said, “Broadly speaking, some states are doing a better job than others at attracting young workers, and North Carolina happens to be one of them. They’ve got great apprenticeship programs, the Research Triangle, and good regulatory policies.”
North Carolina’s relatively low cost of living gives the state an edge over other more expensive cities. Since there is not one major city, such as in New York, cost of living is able to stay low. Carew added, “You’ve got a good blend of costs and jobs, schools with great programs, so it provides a good, unique mix for someone looking to settle. It makes a lot more financial sense to buy a home there than in California, where the rent-to-mortgage ratio is way out of sync.”
Even though tighter credit requirements and higher student debt are hindering younger generations from buying homes, according to the Charlotte Business Journal, millennials actually compose a larger share of would-be buyers in the housing market than any other age bracket. Carew expects homeownership rates to rise faster for N.C. millennials not just in terms of single-family homes, but townhomes and condos as well, because young people are “eschewing the suburb model that their parents embraced a little more.”
According to the National Association of Realtors’ 2014 Home Buyer and Seller Generational Trends study, about 80% of buyers surveyed in the first quarter are looking to purchase a home as an investment. Younger buyers had the strongest sentiment, with 87% of respondents age 33 and younger saying they want to enter the housing market this year. Now is the time as long-term mortgages rates have eased down for the second week in a row. Freddie Mac reported that a 30-year fixed-rate mortgage averaged 4.14% in the week ending June 26, down from 4.17% the previous week. A 15-year fix averaged 3.22%, down from 3.3% last week. A one-year adjustable-rate mortgage fell to 2.4%, from 2.41%.
It is the best time to look into selling or purchasing your home while interest rates are STILL low! Call one of our offices today to get started or schedule an appointment to really look at your financial plans and help you make the best home loan decision or show you how the path toward ownership. Call us anytime. We have multiple locations across the Carolinas to make meeting convenient, or simply fill out our online application to get started.