GRAND RAPIDS, Mich. — For years the perception was that millennials would become the generation that would mainly reject homeownership but in recent years that’s changed.
Nationally, from January to August of 2021 millennials made up 67% of first-time home purchases and 37% of repeat purchases.
A massive number that experts say is only going to go up.
"Grand Rapids might be a little higher than the national just from my point of view, just dealing with every day. Most people I talk to are first-time homebuyers, millennials, you know," said Justin Sayles (NMLS #1203054 Cason Home Loans NMLS #162651), Loan Officer.
While many economists predict this means home-buying will remain strong for the foreseeable future, closer to home it’s a mixed bag.
“It's a good thing, if you want to move, move up a house and you have equity, it's a, it can be a bad thing. If you're, you're looking for your first house, and, you know, you've saved up some money, you've got your own down payment, and everything. And then you make 10 offers, and you lose on every one of them," Sayles said.
They say the pandemic has only encouraged more millennials to buy with growing families, more income, and the desire to work from home.
"When talking with people around here, you know, it used to be like the $200,000-250,000 range was very competitive, because that's affordable for most people. Now, homes that are $400,000-500,000 are just as competitive," Sayles said.
And while houses are being built in and around Grand Rapids it’s not at the rate needed to meet the demand.
Similar growth was seen before the housing crisis of 2008 but experts say a crash is unlikely to happen again.
“We need to check every box, it's very difficult (to get a home loan) compared to what it used to be. So as far as a bubble, the only thing that's going to drive this down is interest rates going up, which they are now. But I'm talking like, a significant hike in interest rates, you know, something, crazy happens," Sayles said.
Loan officers and realtors are now bracing for the spring market which is expected to be very active.
It’s recommended to get with someone that knows what they're doing so they can help you navigate another busy home-buying season.
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