As summertime heats up, it’s safe to say that spring has officially come to an end. But while its cooler days may be behind us, data says its uptick in home buying interest is here to stay.
According to a survey from Realtor.com, this spring was filled with home-buying interest, especially from the nation’s first-time buyers.
This group of homebuyers, who often tend to be Millennials, made up 42% of spring’s home-shoppers.
“Based on our user responses, just under half of all home shoppers this spring were searching for their first home, and many of them were aging Millennials likely driven by life events such as moving in with a partner, getting married or starting a family,” Realtor.com writes. “It may come as a surprise to some people that Millennials are looking to small towns or suburbs, but when it comes to buying a home, Millennials aren’t that different than other generations.”
And they really aren’t that different, as the company noted the vast majority of these young shoppers indicated housing affordability was their top concern when purchasing a new home.
In fact, 42% of first-time buyers said they haven’t closed on a home yet because they can’t find a good house within their budget range, according to the survey.
This isn’t really surprising as several reports have indicated that a lack of affordability has kept many first-time buyers from entering the market.
According to their findings, first-time homebuyers can afford only 20% of housing stock in some of the nation’s housing markets.
The survey confirms that the lack of entry-level supply is putting affordability pressures on too many buyers – especially those at the lower end of the market, where demand is the strongest,” NAR Chief Economist Lawrence Yun said. “This is why first-time buyers continue to struggle finding affordable properties to buy and are making up less than a third of home sales so far this year.”