2021 TRENDS: Millennials & Gen Z
The largest generation in history, millennials will continue to shape the housing market as they become an even larger player. The oldest millennials will turn 40 in 2021 while the younger end of the generation will turn 25. Older millennials will be trade-up buyers with many having owned their first homes long enough to see substantial equity gains, while the larger, younger segment of the generation age into key years for first-time homebuying. At the same time, Gen Z buyers, who are 24 and younger in 2021, will continue their early foray into the housing market.
In early 2020, younger generations, including Millennials and Gen Z, were putting down smaller downpayments and taking on larger debts to take advantage of low mortgage rates despite rising home prices. In fact, only a quarter of respondents to a summer survey reported lowering their monthly mortgage budget or not changing their home search criteria in response to lower mortgage rates. The other three-quarters said low rates would enable them to make a change to their home search, and the most commonly cited change was buying a larger home in a nicer neighborhood.
We expect these trends to persist as rising home prices require larger upfront down payments as well as a bigger ongoing monthly payment due to the end of mortgage rate declines. Early in the pandemic period, there was concern that temporary income losses could prove to be particularly disruptive to younger generations? plans for homeownership, as these were the groups expected to face income disruptions that might require dipping into savings which would otherwise be used for a down payment. Thus far, these disruptions have not had an effect on overall home sales, and some home shoppers report an ability to save more money for a downpayment as a result of sheltering at home, but we are still not completely through the pandemic-related economic disruption.
ADMINISTRATORS DEED ADMINISTRATORS DEED IN MISSOURI AFFIDAVIT OF SURVIVORSHIP affidavit of title ASSIGNMENT AGREEMENT ASSUMPTION AGREEMENT Benefits of owner financing BUYERS CLOSING DOCUMENTS COMMON LAW MARRIAGE contract for deed COVID AND EVICITION DEATH AND REAL ESTATE Deed DOCUMENTS TO EXPECT AT CLOSING EFFECTS OF INFLATION ON REAL ESTATE EVICITION RULES EXECUTORS DEED EXECUTORS DEED IN MISSOURI FINAL WALKTHOUGH future of commercial real estate GENERAL WARRANTY DEED HOW TO REMOVE A LIS PENDENS NOTICE INFLATION LANDLORD LIS PENDENS ORAL AGREEMENT FOR SALE OF REAL ESTATE IN MISSOURI ORAL AGREEMENTS IN MISSOURI Owner financing PRECLOSING WALKTHROUGH PROBATE REAL ESTATE AND ORAL AGREEMENTS REAL ESTATE CLOSING DOCUMENTS RENTAL CRISIS seller financing SELLERS SPECIAL WARRANTY DEED STATUTE OF FRAUDS SURVIVORSHIP AFFIDAVIT TENANT TENANTS IN COMMON TRANSFER ON DEATH DEED WARRANTY DEED WHAT IS A FINAL WALKTHOUGH? wrap around mortgage
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