As the generational buzzword of the century, it only takes is a quick Internet search to find out what the rest of the world thinks of Millennials. You’ve been labeled and stereotyped incessantly as identity-obsessed, image-conscious, hipster idealists whose casual hobbies include traveling to Iceland and finding the next best craft cocktail. With a copy of The New Yorker in one hand and a cup of single-origin coffee in the other, you’ve embarked on a quest to place your unique fingerprint on the world...one shared Facebook article at a time.
But the truth? While you’ve been parodied and pandered to over the last few years, you’ve also refused to be put in a box. In fact, Millennial buying habits and consumer patterns have been stumping experts for the last few years.
It turns out, the world still doesn’t have you figured out.
Naturally, your puzzling consumer habits have spilled over into the real estate market, an arena in which you have been mysteriously absent...until now. In the last several years, Millennials have finally emerged as a substantial force on the real estate market, expressing a strong desire to own a home.
And while Millennials have indeed been moving to San Antonio in droves (nearly a 10% increase in recent years), many still hesitate to take the leap into home ownership. Why, exactly? In this post, we’d like to dispel a few rumors we’ve heard floating around. Because, seriously...as the most educated generation in history, you’re too smart to believe them.
Myth: Between rent, student loan payments, and living expenses, I can’t afford a home.
For the generation constantly labeled as “entitled”, Millennials are surprisingly frugal when it comes to buying their first home...which leads many to adopt an “I’m too poor to afford a home” mentality. The truth? If you have good income and you’ve kept your credit score up, we’re willing to bet you can afford a home. The trick? Find a REA LTOR® that you trust and a mortgage lender willing to work with you.
Myth: Mortgage Rates are going to spike out of control.
Obviously, mortgage rates have been on the rise. Towards the end of 2016, 30-year fixed rates reached above 4%, and experts have predicted that these rates will continue to rise toward 5% in 2017. But even while rates are relatively higher than they were last year, keep in mind that the last few years have been almost shockingly low when compared to the last 50 years. In fact, the current rates are still considered to be at a historic low. You can read more about SA’s mortgage rates in our blog.
Myth: SA houses will soon be too expensive for first-time buyers.
If you think San Antonio houses are too expensive, it’s possible you’re looking in the wrong place. Our numbers show that most of the homes sold in our area were very affordable. in the last year, 15,000 sales were $200K or under, accounting for 75% of all sales in the city! In fact, San Antonio boasts the lowest cost of housing out of all large Texas cities. Take a look at the best neighborhoods for first-time buyers if you don’t believe us.
Myth: It will soon be extremely difficult to get a mortgage for a home.
Perhaps the most intimidating part of buying a home is the dreaded down payment. Thankfully, the Federal Housing Administration is raising its limits to cover home purchases for first-time buyers! Right now, only a 3.5% down payment is required. Bonus tip: if you’re coming from a military background, a VA loan often doesn’t require a down payment, even for young people.
Myth: With so many people wanting to move to SA, there won’t be enough houses on the market.
With a relatively low cost of living, high inventory, and diverse community, It’s truly no surprise that San Antonio was recently labeled as a top “Millennial Boomtown” by Forbes.com. In fact, our Alamo City has gained 28,600 new Millennials in the last several years...an increase of almost 10%! So will inventory plummet with all the new residents? Hardly! Home builders have been ramping up to build more affordable housing, and San Antonio still boasts about 10k new listings each month.
Myth: The houses in SA are getting so expensive! It’s going to be cheaper to rent.
Think renting is the answer to all your problems? Think again! While mortgage rates may have risen slightly, San Antonio rent prices are rising at a far more alarming rate. In fact, most mortgage payments are fairly comparable to monthly rent rates...and they help you build equity. Check our blog about the hidden cost of houses for rent in San Antonio if you’d like to learn more.
