Today I talk about young Buyers purchasing their first homes.
“Home sales traditionally taper off toward the end of the year, but in September they surged beyond what we normally see during this season…I would attribute this jump to record-low interest rates and an abundance of buyers in the marketplace, including buyers of vacation homes given the greater flexibility to work from home.”
What’s drawing so many buyers to the market?
As Yun mentioned, record-low interest rates are key. Today’s rates are strengthening purchasing power for buyers, too. Sam Khater, Chief Economist at Freddie Mac, emphasizes:
“Mortgage rates today are on average more than a full percentage point lower than rates over the last five years.”
If you’re a homebuyer right now, there’s no question that you want to take advantage of this opportunity – and you’re not alone. Competition among buyers is definitely increasing as more buyers enter the market and mortgage interest rates remain so low.
Who’s planning to buy a home right now?
Today’s affordability is appealing to all generations and seems to be especially attractive to younger buyers who want to begin growing their wealth through homeownership. There’s a distinct increase this year in the percentage of those in younger generations searching for homes. The National Association of Home Builders (NAHB) notes:
“Between the third quarters of 2019 and 2020, the share of Gen Z adults planning a home purchase rose three points to 14%. Millennials, however, are the generation most likely to be considering buying a home (22%).”
Finally, I had the opportunity to sit in the EDC meeting last night attending as a member of the EDC. We are living in a city that is growing and expanding exponentially, despite the National Pandemic. There are so many bright spots happening within our City:
1) 39 Building Permits have been issued YTD up from 33 Last year at this time
2) 7 Commercial Permits have been issued YTD which include Herzog Foundation, Shamrock, Nodaway Bank, Star Development White Box at the Marketplace, KC RV, White Iron Ridge, and Shoreline. There are many more coming and I can't wait to share more about them.
3) Sales and Use tax is up 42% Year Over Year
4) Sales Tax is up 17% Year Over Year
5) 670 Business Licenses have been mailed out to businesses for 2021 Renewal
