I recently received this information from friend and colleague Venessa Ect of Pacific Residential Mortgage, and thought it useful to pass along to you. ~LM
Millennials vs. Baby Boomers
The current focus on Millennials in the housing market has overshadowed an important generation of homebuyers similar in size and home preference; Baby Boomers.
Baby Boomers, aged 51-69, shared similar first time homebuying experiences as Millennials are facing today; both entering the housing market at a time when people had little money for down payments and job opportunities were scarce. However, time, money and previous home ownership have put Baby Boomers at an advantage in today’s market.
As Baby Boomers sell their larger homes to downsize, they will be in competition for the same homes that Millennial homebuyers are looking to buy. The one catch: Baby Boomers tend to have funds available for a larger down payment, giving them the advantage in a multiple offer market. In addition, Baby Boomers may find it easier to qualify for a mortgage with traditional sources of income vs. the more non-traditional income sources of Millennials.
The National Association of Realtors (NAR) released generational trend data showing increased numbers of Baby Boomers moving to metropolitan areas and buying homes as they delay retirement; representing almost 30% of all homebuyers. Areas attractive to the Millennial homebuyer for job creation and community resources have now become desirable for Baby Boomers.
While the Millennial generation is poised to be important to the housing market, don’t overlook the large population of Baby Boomers. Often with desirable financial resources and previous homebuying experience, they are great clients to have. Many are ready to buy homes in the next few years they can live in no matter their circumstances as they age.
Venessa Ect is a Senior Mortgage Banker at Pacific Residential Mortgage of Sherwood. Contact her today about qualifying for a home loan!
Sr. Mortgage Banker
Phone: (855) 905-LOAN (5626) ext. 1001
Toll Free: (855) 231-6750 FREE
Mobile: (971) 241-2001