Monday Market Update: Inflation Is Not A Roadblock For All
While 92% of millennials say that inflation is impacting their homebuying plans – most are not letting it stop them!
We all know that old adage that life is 10% what happens to you and 90% how you react to it, right? CNBC reveals that this is just how the generation of those aged 27-42 are handling the current housing market. As featured in CAR® Market Matters last month, a survey conducted by Real Estate Wish/Clever last month found that 92% of millennials report that inflation has impacted their homebuying goals, yet 72% are proceeding with the purchase anyway.
Reported strategy adjustments include:
- Saving more money for the home purchase (59%)
- Spending more than they originally planned (36%)
- Buying a fixer upper (26%)
- Buying a smaller home (25%)
It’s no secret that the 2nd half of 2022 was a gamechanger for the real estate market, as rising interest rates and high home prices had hampered affordability for many buyers. CNBC reports that the situation is improving as median home prices at the start of 2023 were just 2.3% higher than one year earlier, while mortgage rates have retreated back to the 6% range after hitting 7.3% in October 2022.
In addition, inventory is at a supply level of 2.9 months – while a balanced market is 4-5 months of supply. That means that buyers are still facing limited choices and some competition, as demand continues to outpace supply.
Those who are still in a position to buy are in a unique window of moderating home prices, possibly some stabilizing rates and finally a time where contingencies are becoming accepted again.
Read the details in full here: 92% Of Millennial Homebuyers Say Inflation Has Impacted Their Purchase Plans, But Most Are Plowing Ahead Anyway, Study Shows
Just like anything in life – this market is what you make of it! We encourage you to stay focused on what you want and how you can get there.
Have a great week,
Bobbi Decker
DRE#00607999
Broker Associate, Bobbi Decker & Associates
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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