Conventional wisdom held with respect to purchasing the first home is usually in your thirties after you’ve been married. But convention doesn’t seem to be fitting the formulas for today’s real estate market.
Many of the Millennials who are forming families today have hit a hard stop when it comes to purchasing their first home, as the housing market has appreciated over 25% in most places year-ver-year. What a difference a year can make!
Millennials represent the largest generation in the United States, and they are now entering this heated and fast-moving market niche. Half of all purchase loan applications have been put in by Millennials.
New Jersey
The median price for a single-family existing home in Monmouth County crossed the $540,000 mark in July.
Nationwide the median price of an existing home was only 354,000 that is close to an all-time record. It seems that in 2021 it took no time for the housing market to cross the $300,000 threshold and now we’re closing in on the $400,000 threshold. According to the National Association of Realtors, prices have climbed for a record 116 straight months and show no signs of letting up.
Perhaps the biggest reason for the trophy real estate market has been the shortage of available inventory, and that is becoming a very old story. But now that inflation has kicked in, the cost of building materials has skyrocketed, making new home construction more expensive than ever before.
CoreLogic reported that this Millennial generation is accounting for 67%, or two-thirds of all first-time home purchases.
Technically speaking the median price single-family existing home buyer was spending 17% of the median family income on housing in the third quarter of 2021, according to the National Association of Realtors. This is significantly lower than it had been 30 years prior in 1990 when 23% was spent on housing.
