Austrailian millionaire Tim Gurner declared that Millennials are unable to buy homes because of wasteful spending on items such as avocado toast. “When I was trying to buy my first home I wasn’t buying smashed avocados for 19 bucks and four coffees at $4 each”. Within hours of his remarks on TV’s “60 Minutes,” Millennials took to the internet to defend their generation’s money habits. Acknowledging that avocado toast is not the culprit keeping millennial from buying their first home, they are are facing challenges with a competitive labor market and increased expenses on every level, not just the breakfast they choose to eat. Your credit union lending solutions could be the answer to some of those challenges.
Even though the market is tougher than ever, Millennials are the largest group of home buyers. With home values up 7% and fewer homes on the market than in 2016, buying a home is no easy feat in 2017. Additionally, Millennials are competing with seasoned, repeat buyers who are equipped with more capital and experience. Millennials go out to buy their first home and show up to open houses where interested bidders are making offers in cash.
The market has also seen a shortage of starter homes in recent years, which has caused a direct correlation to the increased price of homes. So while Millennials are more than interested, the homes are not within a first-time buyer’s budget, and definitely not the prices their parents were up against when they sought out their first homes.continue reading »