More Young Granbury Residents are Buying Homes With a Little Help From a Friend

More Young Granbury Residents are Buying Homes With a Little Help From a FriendThough mortgage rates remain high and home prices continue to increase, more younger home buyers are purchasing their first home. These buyers are doing so with the help of family and friends to make a down payment and afford homeownership. 

Numbers show that the millennial generation now comprises the largest number of homebuyers across the country. Homebuyers from the ages of 25 to 43 are about 38% of the homebuying market currently. This data can be found in the Home Buyers and Sellers Generational Trends Report of 2024 compiled by the National Association of Realtors. Previously the largest number of buyers was a title held by baby boomers but the millennial generation has moved just past the boomers who now only make up 31% of the market. 

Not only is the number of younger homebuyers increasing, but so are the numbers of first-time buyers. The number of first-time buyers increased from 26% to 32% over the last year. The number is almost back to the normalized level of first-time buyers in the housing market which has historically sat at around 40% of buyers purchasing homes. The youngest of millennial buyers made up a whopping majority of first-time homebuyers in the last year. 75% of buyers between the ages of 25 and 33 purchased their first home in the last year. 

A Large Number of These Young Buyers Received Help in Their Purchase

The latest NAR survey also found that a significant portion of millennial first-time home buyers had help in their home purchases. The survey showed that 25% of younger millennial homebuyers received help with the down payment from friends or family. Some homebuyers pooled money with others to afford homeownership going in on a home purchase together. Millennials made up a large portion of buyers in multi-generational home purchase situations. This helped millennials get into a larger home.

Many Homebuyers Stress About a Down Payment

Real estate experts believe coming up with the money for a down payment on a home is one of the biggest challenges facing homeowners today. First-time home buyers are battling high rent and student loan payments holding them back from saving more money to make a down payment. Some millennials also found themselves tapping into other savings, 401k accounts, loans, and selling off stocks and bonds to help with money for a down payment on a home. 

Millennials aged 25 to 33 made an average home down payment of 10% this number only jumped to 13% for older millennials aged 33 to 43. While homebuyers between the ages of 59 to 68 made an average down payment of 22% and homebuyers between the ages of 69 and 77 made an average down payment of 35%. 

Some real estate experts believe that first-time and younger home buyers make lower down payments on a home purchase because there is little knowledge about down payment assistance programs available to potential homebuyers. 

Despite the challenges of coming up with a down payment and navigating more lender accountability since 2009 (when the government cracked down on predatory lending practices after the housing crash) as well as continuing high mortgage rates the younger generation of adults is still interested in purchasing a home. 

If you are hoping to purchase a home in Granbury, I am here to help. Contact me any time for any Granbury real estate needs. Let the team of expert local real estate agents at Knieper Team Real Estate help you find the Granbury home you will love, be it a first-time starter home or your dream Lake Granubry estate. 

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