More millennials are expected to become Columbia SC home buyers this year, and they might have a wish list of features that set them apart from previous generations of house hunters. We have assembled a list of features that The Federal Savings Bank has also noted as being desired by Columbia SC home buyers, especially among millennials:
Features Millennial Columbia SC Home Buyers Demand
Separate laundry room. According to the National Association of Home Builders on January 26th, the No. 1 feature millennials demand is a separate laundry room. Many first-time Columbia SC home buyers said they would pass on houses that did not have this room.
Several storage areas. Another must-have is plenty of storage, including a walk-in pantry and garage storage. This could give millennials more room to hold and organize their belongings after spending time renting in apartments or living with their parents.
Energy-efficient technology and equipment. A separate report back in October 2014 by the National Association of Realtors found millennials are also demanding technology that is sustainable or energy-efficient. These include LED lighting as well as heating and cooling systems that save energy.
Simple and open spaces. While older generations liked the look of crown molding and other details, millennial Columbia SC home buyers are not so much interested in these design elements, according to NAR. Instead, they prefer open spaces in houses to spread out.
Overall, millennials will look for homes that fit in their budgets, which could mean smaller houses, according to NAHB.
Although millennials will likely seek out less pricier homes, they are less likely to favor houses made with inexpensive materials.
Get more information about how first time Columbia SC home buyers, whether millennials or not, can get started with the home buying process in our section on Columbia SC Home Buying Tips to your right under Columbia SC Real Estate Categories.
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Nearly half of Columbia SC homebuyers surveyed by The Demand Institute who say they plan to move at some point in the future say that location still matters for them.
While some Columbia SC homebuyers say they will move for a larger or nicer home, or perhaps buy a home for the first time, three out of every four movers say that a location consideration is a reason for moving.
Most Columbia SC homebuyers who answered the survey said they won't go very far. More people seem to be wanting to move closer to city centers and are looking for denser, more walkable living. But most Americans in general say they will still continue to choose to live in the suburbs.
Findings of Columbia SC Homebuyers Surveyed
For most Columbia SC homebuyers, the location of their home is as important as or even more important than the physical home itself. So it's not surprising that location-related reasons play a critical role in the decision on when and where to move. 75% cite one or more location-related reasons for why they are planning to move.
While location plays a big rol in housing decisions, most Columbia SC homebuyers say they will stay in state, and more than half (59%) will move within 30 miles of their current home, and 27% of those plan to move less than 10 miles from where they live now.
A big factor for Columbia SC homebuyers is the desire to feel safe where they live. "Safe Neighborhoods" is a top unmet housing need for many Columbia SC homebuyers, as well as most Americans nationwide.
Other location-related priorities vary greatly. Those with school-age children care about good schools, while those in the workforce want to be close to their job. Others want to be in walkable areas near entertainment, services and public transit, and some don't want to be close to anything at all.
Since most Columbia SC homebuyers have at least one car, they continue to be fine with being a short drive from most services and amenities. Still, most do want to be within walking distance of one or two places, like a park, bus stop or convenience store.
There are important benefits associated with more walkability. More walkable communities report stronger expectations with home price growth, and are also more likely to report that their quality of live has improved in the past few years.
As you can see, there is tremendous diversity among Columbia SC homebuyers in terms of features and benefits. This diversity will likely persist going forward, given that these differences reflect divergent consumer needs and preferences. And this is a good thing, providing Columbia SC homebuyers with options consistent with their life stage and preferences.
If you're considering joining the ranks of Columbia SC homebuyers but are not sure where to begin, give us a call or fill out our short contact form here on our site. We're always available to sit down and discuss your moving plans with you and help you find the right neighborhood for your lifestyle and desires.
First-time Columbia SC homebuyers now account for only one-third of all home purchases, the lowest share since 1987.
That's according to an annual survey conducted by the National Association of Realtors, which questioned a random sample of people who purchased homes between July 2013 and June 2014.
Reasons First Time Columbia SC Homebuyers Are Vanishing
Of the many reasons first time Columbia SC homebuyers seem to be disappearing, rising rents and repaying student loan debt makes saving for a down payment more difficult, especially for young adults who've experienced limited job prospects and flat wage growth since entering the work force. Adding even more trouble for would-be first time Columbia SC homebuyers, those finally in a position to buy have had to overcome low inventory levels in their price range, competition from investors, tight credit conditions and high mortgage insurance premiums.
Wages should go up as the job market continues to improve, but first time Columbia SC homebuyers report that getting a mortgage is a lot harder than they expected.
NAR Chief Economist Lawrence Yun said in a statement recently, "Less stringent credit standards and mortgage insurance premiums commensurate with current buyer risk profiles are needed to boost first-time buyer participation, especially with interest rates likely rising in upcoming years."
The median age of first time homebuyers nationwide was 31, and their median income was $68,300. Their typical purchase: a 1,570-square foot home costing $169,000, something that is increasingly more difficult to find in the Columbia SC real estate market.
The typical repeat buyer, by contrast, was 53, with an income of $95,000. Repeat buyers bought bigger and more expensive homes.
Home sellers, meanwhile, are getting older: 54 on average now vs. 46 back in 2009. The typical seller has been in his or her house for 10 years — a new high.
If the share of first time Columbia SC homebuyers continues to shrink, many homeowners who would like to move up to a more expensive house may find it harder to sell their current home.
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Many young "would-be" Columbia SC homebuyers are finding themselves in a position that young Columbia SC homebuyers haven't been in before.
Statistics tell us there aren't as many young Columbia SC homebuyers as there used to be. Thirty-six percent of American homeowners are 35 and younger, the lowest on record since 1982, when the census's Housing Vacancy Survey began tracking homeownership by age. Those age 65 and older have a much higher rate of homeownership – 80 percent – but that's expected. The longer you live, the more time you've had to save and buy a house.
Many young Columbia SC homebuyers are beginning to wonder if they've done something wrong, and will they ever have a place of their own.
Financial Hurdles for Columbia SC Homebuyers Today
There are numerous factors pushing against millennials' plans to become Columbia SC homebuyers, including the economic hangover from the recession, but student loans are a major obstacle. Even if a lender doesn't see your massive student loan debt as something that could prevent you from making a mortgage payment, plenty of potential homeowners do.
Student loans have kept many potential Columbia SC homebuyers on the sidelines in recent years, and that trend is poised to get even worse going forward.
Other "would-be-buyers" are burdened with the lack of any credit history at all. Lenders generally see you as a risk if you have no credit history.
The best advice most lenders have for young Columbia SC homebuyers is to establish some credit as soon as possible. Getting a credit card will help, providing you don't abuse it and turn no credit into bad credit. The average millennial is two to four times more likely to make a late payment than older generations. So be careful with credit cards.
Your geography may be an obstacle. If you graduated from college and moved to Columbia SC with a lot of student debt and no other credit, your chances for becoming one of the few Columbia SC homebuyers in your age bracket to own their own home is slim.
If you have good credit, a good job, some funds for a down payment, and are not strapped with a lot of student debt, getting a mortgage may still be a challenge if you're using the bigger lenders. Sometimes it's better to shop the smaller lenders and credit unions. Oftentimes they may be willing to keep your mortgage "in-house" rather than re-selling your loan to Fannie Mae or Freddie Mac.
Smaller lenders can work around some circumstances and situations with less red tape, and without having to worry about guidelines on the loan resale market.
Consider an FHA loan. These loans are insured by the Federal Housing Administration and are for first-time Columbia SC homebuyers, although the FHA defines that as anyone who hasn't owned a house in three years. Generally, you'll need a down payment of at least 3.5 percent and a credit score of at least 580, although some lenders won't even begin a discussion unless you're in the mid-600s.
Talk to as many lenders as possible, and see what specific programs they offer and what the best rate around is. Go in person to a branch office and speak directly with a loan officer. Your chances of becoming one of the newest Columbia SC homebuyers is much better going that route than trying to apply online, or through a larger lender.
We can help you find the best lender for your set of circumstances. Contact us and let us help you get on the right path to becoming a Columbia SC homebuyer.
First time Columbia SC homebuyers seem to be disappearing right before our eyes. The same is true nationwide, as the percentage of homes that were sold to first-time homebuyers dropped to 33% this year, the lowest percentage in almost three decades.
This drop in first time Columbia SC homebuyers is despite the fact that mortgage rates are hovering near record lows and home prices are still off about 15% compared to the housing boom peak, according to the S&P/Case-Shiller 20-city home price index.
Young adults, who make up the lion's share of first time Columbia SC homebuyers, want to own. According to a Zillow survey released in October, respondents ages 23 to 34 were, in fact, very bullish on home buying, with 83% of young renters expecting to buy a home someday.
First Time Columbia SC Homebuyers Want to Purchase a Home
The problem is not desire. Blame it on heavy student debt loads and incomes that aren't keeping up with rising home prices. Rising rents and repaying student loan debt makes saving for a down payment more difficult, especially for young adults who've experienced limited job prospects and flat wage growth since entering the workforce.
Strict lending standards have also made it more challenging for Millennials to qualify for mortgages, especially since many are carrying thousands of dollars in student loan debt. This has also added costs to mortgage borrowing for many young buyers. With limited credit histories, they usually have lower credit scores and lack the funds to make large down payments.
Columbia SC homebuyers using low down payment FHA loans, for example, pay about $50 more a month for mortgage insurance on loans of $100,000. And borrowers with 640 credit scores getting Fannie Mae- or Freddie Mac-backed loans pay fees that are three percentage points higher than borrowers with 740 credit scores.
Get more timely information for Columbia SC homebuyers in our section on Columbia SC Homebuyer Tips to the right under Columbia SC Real Estate Categories.
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