When it comes to buying Columbia SC homes, first-time buyers, the millennial generation, falls under the "prime" home buying demographic. Unfortunately, many millennials also fall into another, less desirable, category: adult children. An adult child is a term that's caught on recently, and simply refers to adults roughly between ages 18 and 30 who still live at home with their parents, or are still dependent on their parents for their living arrangements.
Homeownership among prime home buyers has dropped 11% from 1980 to 2012. Some would argue the statistics are skewed, because many 19-24 year olds are still in school and not financially able to live on their own – but that's not the point. Many adults who fall into that 18-30-year-old range are considered prime candidates for homeownership, yet over 50% choose to live with their parents or rent. Ideally they should be buying. What's holding them back?
Problems Keeping Millennials From Buying Columbia SC Homes
Jobs – Even with talk of the job market turning around, there are still over 9 million people unemployed. This leads to more young adults either struggling to find jobs, or taking part-time jobs with less pay. Either situation makes it much harder to save up for buying Columbia SC homes.
Debt – If you don't have that job, saving becomes very difficult, if not impossible. But it's even harder when there's student loan debt piling up on top of everything else. According to CNN, the average student's post-college debt is anywhere from $25,000 to $29,000. This becomes a huge problem when trying to save for buying a Columbia SC home. One of the main factors of being a prime home buyer is also having a college education, which is associated with higher income and, unfortunately, student loan debt.
Lifestyle – Low employment and high student loan debt numbers are forcing millennials to make lifestyle changes as well. CNN projects the millennial generation to have the lowest rates of marriage by age 40 compared to any generation. This is important because marriage and family tend to need larger living space. The two points above (employment and debt) have a huge impact on that, too.
This is where millennials really need to step it up. The job market does show signs of recovering over the next couple of years and, hopefully, millennials will find more opportunities for buying Columbia SC homes.
Until it does, millennials who have goals of homeownership, should try and save whatever money they can. It's important for them to start building up credit by paying off loans and being on time with payments. Even if millennials continue to live at home, those two takeaways are a step in the right direction, and will help them be able to eventually buy homes.
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The challenges and opportunities of buying Columbia SC homes in today’s market are different than they were in the past, including the recent past. According to money.CNN.com, homes are selling 19% faster than they were one year ago. The speed with which homes are selling is due to two factors.
First, prices are low, as are mortgage rates.
Second, there are not enough homes on the market for all potential buyers.
Therefore, if you are considering buying Columbia SC homes in today’s market, you must act quickly. Even when you act quickly, you must be aware that you might not move in, depending on your offer.
Buying Columbia SC Homes is More Difficult Today
It is more difficult today for middle class Americans to buy the first or second home they make an offer on. Investors with cash receive favor at multiple levels of the process over people with traditional loans. Federal Housing Authority(FHA) loans give first time home buyers the opportunity to buy a house with a low down payment.
People who finance through the FHA program also experience difficulty in buying a home if investors with cash also want the property, and people with traditional loans might be favored over them as well. The more cash you have for a down payment, the more likely it is that your bid will win the first time you make an offer. More cash as a down payment is a strategy that has proven successful when buying Columbia SC homes, even more successful than offering to pay a higher price for the homes.
How can middle class Americans achieve the dream of home ownership if they’re competing in a process that favors cash? A 20% down payment traditionally qualified someone for home ownership. In order to be competitive when buying Columbia SC homes, some experts recommend a 35% down payment. It is not impossible for people with a low down payment to purchase a home. They should simply expect the duration of the process to be longer.
The risk involved with buying Columbia SC homes depends entirely on the neighborhoods where you’re looking. After years of declining prices, the market shows signs that it has bottomed. However, when buying Columbia SC homes, you should bear in mind that it is possible for prices to drop again after you buy. Just remember, you’re not looking for the best price, you’re looking for the best home.
Acting quickly and taking advantage of low prices and mortgage rates can be tempting, but requires some soul-searching. If you think you might move again in two years, the costs associated with buying Columbia SC homes will not prove home ownership to be less expensive than renting. Do you want to live in this community in the future? If your answer is “yes” – this is where you want to raise your family, raise a garden, live closer to your aging parents – home ownership is, without a doubt, an investment you should actively seek.
For more tips on buying Columbia SC homes, see our Columbia SC Home Buying Tips section under Columbia SC Real Estate Categories to the right.
When looking at Columbia SC homes for sale, there are several key things which should never be overlooked. This is a major investment and your search should be thorough so you don’t experience buyer’s remorse and won’t be wishing you had bought something different two months after moving in.
Must Things to Look For When Shopping Columbia SC Homes For Sale
Location
Without question, location is the most important aspect to consider when looking for Columbia SC homes for sale. Imperfections in the house itself can be fixed. Dream components, you can live without or add later. You can’t, however, pick up the house and move it to a new location. If you accidentally buy in a bad neighborhood, you’re going to be perusing the new Columbia SC homes for sale listings once again before the year is out. This time, however, you’ll have another worry: selling a house in a bad area. Make sure you love where your house is located before you even consider buying it.
Curb Appeal
When owners and real estate agents attempt to put a house on the market, a lot of emphasis is placed on curb appeal. But this isn’t just for sellers. As a prospective buyer, you should consider it as well and on more than just an instinctive, impulse level. Look at the new Columbia SC homes for sale and consider which ones best reflect your lifestyle. If you don’t have the money to afford a landscaping crew and don’t care for yardwork yourself, why is that huge backyard with garden and pond so appealing? Consider the materials used to build the house. Wood, brick, and other materials all have their advantages and drawbacks. Know them before you make your decision.
Size
If you just won the lottery or happen to have the kind of income that allows you to choose whichever new Columbia SC homes for sale you care to buy, congratulations on your fortune! For most people, however, buying a house means making some tradeoffs. You may want that mansion by the lake, but do you really need 6 bedrooms for a family of three? On the other hand, you don’t want to buy a tiny house for a large family. Think carefully about size and don’t make a decision based on emotion. Remember, this is a huge investment, so make sure you follow these three guidelines when looking at any Columbia SC homes for sale.
We have other home buying tips right here at our site. Just click on the Columbia SC Home Buying Tips link under Columbia SC Real Estate Categories to your right.