How the Pandemic Is Helping Some Millennials Realize Their Home-Buying Dreams
This year's coronavirus pandemic and the accompanying recession have turned a lot of people's financial plans upside down. But those millennials who've been lucky enough to hang onto their jobs are fast-tracking their plans to buy a home, in part because the pandemic is helping them do so.
The nation's largest generation has been helped by record-low mortgage interest rates, according to a recent realtor.com® survey. Those low rates are helping to offset home prices that are at an all-time high in many places.
Chief Economist at realtor.com, Danielle Hale says:
“For those who have weathered the pandemic well by keeping their jobs, there have been some opportunities to become homeowners. They can take advantage of low mortgage rates, they may be able to save more for a down payment because they’re not spending as much going out. But with unemployment rates very near record highs, we know that other millennials are likely struggling and may have to delay homeownership.”
Survey Results
According to the survey, almost half of millennials, 49%, pushed up their plans to buy a home due to the pandemic, according to the survey. Of the roughly three-quarters of millennials surveyed who are now working remotely due to the threat of contracting COVID-19, nearly two-thirds hope to buy a home because they can now telecommute.
Many are motivated to move because their current home doesn't fit their needs anymore. A big backyard, a home office, and space for the kids to do schoolwork never sounded so good! The second most popular reason for wanting to buy was to accommodate a growing family while taking advantage of low interest rates and living in a safer community accounted for the rest.
New homes sales broke the 1 million mark for the first time since 2006 last month, rising 43.2% from last year and up 4.8% from July.
Chief Economist at realtor.com, Danielle Hale also says:
“Being able to work remotely opens up more opportunities for people to move farther away from pricier cities. Because there aren’t many homes for sale, being able to expand their search radius makes it more likely they’ll find a home that works for them.”
Even though those lucky enough to work remotely can live practically anywhere, about 49% of those surveyed said they want to stay within their current city. Meanwhile, 31% would like to move to the suburbs. Only 13% were seeking homes in another city within the same state, while just 8% wanted to move out of state
To Summarize
The pandemic has definitely aided some in saving and preparing for a new home. This uptick in the market has been supported by low interest rates and low inventory, meaning now is the perfect time to sell your home or buy!
h/t Realtor.com®
