With the housing market going great, its leaving a generation behind: The millennials, who are not having good luck purchasing a first home.
Affordability is a key factor in why there are less first-time home-buyers in this generation, especially in high-priced areas such as New York, Los Angeles, Boston and Washington D.C.
Global Chief Economist Ralph DeFranco, Ph.D., warns millennials: With interest rates and real estate prices on the rise, now is the time to purchase a home, or else. Although there are no signs of a housing bubble, the job market and less houses available should keep the housing market strong.
There is a prediction that the real estate prices will increase by 6% in 2018. Mortgage rates are expected to rise as well, causing homeowners to stay put, especially those with fixed-interest rates on their properties.
Although millennials love Boston, the affordability of a home is no-so-attractive to the group with the $735,000 median price of a home. With new companies coming to the city, affordability isn’t a concern with Boston realtors.
The real estate market today is being driven by buyer demand and ready-to-buy first time homeowners who are concerned with rising rates.
-Allen A Garzone II, Garzone Real Estate, Inc, Boston Real Estate Agent