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Millennial Homeowners - Is It Time to Sell?

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Despite what many people believe, Millennials are not a generation of renters. 34% of homes in the US were purchased by Millennials last year, and the most recent census report shows that the homeownership rate among Millennials is rising. In 2010 when housing prices crashed, many Millennials took advantage of the situation and purchased homes. If you're one of these people, now might be the time for selling your home for several reasons.

1. Equity Buildup

Home prices have been rising since the beginning of 2012, and your house may have appreciated by more than you think. According to ATTOM Data Solutions:

“…homeowners who sold in the second quarter realized an average price gain of $51,000 since purchase — the highest average price gain for home sellers since Q2 2007, when it was $57,000.

The average home seller price gain of $51,000 in Q2 2017 represented an average return of 26 percent on the previous purchase price of the home, the highest average home seller return since Q3 2007, when it was 27 percent.”

2. Projected Home Price Increases

If you've just gotten married or found that you're about to become a parent, you may have plans to move out of your house into a bigger home and maybe into a different area. If you wait to buy a more expensive home in this market, that probably wouldn't make sense. The home price expectations survey projected that home prices will increase by nearly 5% over the next year. So your house is price will increase, but not as much as homes currently valued higher than yours.

So if you're lucky enough to be one of those Millennials who bought a home in 2010 or even, later now might be the perfect time to move up to the home of your dreams

 

Interest rates are near a historic low of 3.96% for a 30 year loan, according to Freddie Mac’s latest Primary Mortgage Market Survey. Of course, the lower the interest rates, the lower your monthly costs. But it also affects your purchasing power.

Purchasing power is simply how much home you can afford on your budget. The lower the rate, the more expensive the home.

This chart shows what the impact of rising interest rates would have on your purchasing power if you buy a home in the national median price range, and planned to keep your principal and interest payments between $1,850-$1,900 a month.

So the moral of the story is to act now so that you get the most for your money.

Displaying blog entries 1-2 of 2

Contact Information

Photo of The Ellerbrake Group Real Estate
The Ellerbrake Group
RE/MAX Preferred
1668 Windham Way
O'Fallon IL 62269
Office: (618) 632-0001
Direct: (618) 791-8773
Fax: (984) 222-6820