Is It Time to Buy a Bigger Home for Millennials?
All eyes are on millennials in today’s housing market. It is because millennials are the largest generation, and they’re also currently between 25 and 40 years old. These ages are often considered prime homebuying years when many people begin to form their own households and invest in real estate in Southern California. If you’re like many millennials who are spending much more time at home these days, you may have a growing need for more space or upgraded features, making moving more desirable than ever.
For those millennials who already own a home in Southern California, there’s a great opportunity to move up in 2021. Danielle Hale, Chief Economist at realtor.com, explains:
“Older millennials will be trade-up buyers with many having owned their first homes long enough to see substantial equity gains.”
Even if you bought a home sometime in the last few years, you may have more equity than you realize, and that’s a big factor to consider when you’re thinking about moving. According to the Homeowner Equity Insights Report from CoreLogic:
“In the third quarter of 2020, the average homeowner gained approximately $17,000 in equity during the past year. This marks the largest average equity gain since the first quarter of 2014.”
The growing equity can be the motivation you’re looking for to fund your next move, especially if what you need in a home is changing right now. As equity builds over time, it can be put toward the down payment on your next home in Southern California.
In addition to equity gains, today’s housing market affordability is powered by record-low mortgage rates, so moving at a time when you can get more for your money may be more realistic than you think.
If you’re a millennial thinking about moving to Southern California this year, you’re not alone. Let’s connect to shed light on the equity you have in your current home and the opportunities it can create.