Christian Real Estate Blog

Generation Y Enters Housing Market Search

"RISMEDIA, May 4, 2006-(KRT)-Bryan Hollermeier paid $273,000 for his first house when he was 23 years old.

He took out an interest-only, 30-year mortgage with no money down and planned to keep it for no more than five years. To enhance its resale value, he spent as much as he could afford on upgrades that would make the home attractive to families.

"What I would pay in principal I'm putting into mutual funds and investment accounts that make returns," said Hollermeier, now 26 and a mortgage banker with Merchants Mortgage. "Equity just sits in your house."

Hollermeier represents Generation Y, the group born between 1979 and 1984 that is now coming of age and buying homes. Demographers estimate about 65.3 million people fall into that age group, and they're changing the way moderately priced homes are sold.

"Several years ago, the average first-time homebuyer was 30 years old," said Justin Juarez, broker/owner of Metro Brokers Liberty Home Group LLC. "Nowadays, there are people who are 18 or 19 years old." Generation Y buyers -- roughly 22 to 27 years old -- are more technically savvy than the Gen-X buyers who preceded them. Generally, they've done their homework online before physically inspecting the house."

posted by Justin Smith @ 5/04/2006 12:45:00 PM