New Home Sales were down in February but only missed expectations by 2K. The median sales prices increased almost 10% year over year. We should mention last month’s report for January, however, was revised higher by 5%, making this report not a disappointment but more aligned with expectations. Not to mention it’s still slightly above last year’s figure.
Generation Z, those born in 1995 or later, are not to be ignored when it comes to homeownership. Almost 100K Gen Z folks have a mortgage and their average loan balance: $140K. Not a hefty loan amount but let’s be honest, the oldest of this generation is 23 years, making this quite impressive. Their emergence this early is a pleasant surprise and speaks to the strong housing market.
No surprise, Grand Rapids made the top list for where most millennials are getting mortgages over the last year. The top places had one thing in common: reasonably priced homes, which offers lower downpayments, the biggest obstacle millennials are facing when purchasing a home. Where are they not buying? Florida owned five of the fewest millennial buyers locations. Cities that showed the fewest millennial buyers are cities that are also considered “retirement-heavy”.
How are folks getting ready for Spring’s competitive market? Well, it’s already starting and homebuyers are getting prepared and feeling confident, aware of the tough competition ahead. Sixty percent of buyers expect to close in the next 6 months, according to one poll; and 40 percent of potential buyers are planning to buy with a downpayment above 20 percent.