First time Home Buyers of Bay Area Real Estate & Increasing Declines
As a member of the millennials, more specifically, those millennials graduating college in these last few years, I notice the large amount of us struggling to see the possibility of ever owning property of our own. With rent values increasing almost daily to unaffordable heights, saving money for a down-payment in the competitive market that is the Santa Clara County Bay Area, looms over us as an impossible real estate goal.
Rising prices combined with a tightening on the supply of homes for sale in the Bay Area cultivates an expensive and ultra-competitive marketplace where new consumers are priced out before even considering entering. According to the Home Buying Institute, these rising prices are met with new tactics for making offers in order to gain a high possibility of acceptance. Home Buying Institutes argument concludes that those who are carful to make calculated offers are being outmatched by those who make quick, appealing offers to sellers. The down-payment is the most difficult road-block to pass on the way to first-time home ownership. Saving a high amount of money solely to put into a property is an increasingly difficult challenge.
These facts would lead me and you to believe that the market is against new entrants, however with all these facts there comes many banks and lenders deciding on offering “First-time buyer” programs where the Downpayment could be as low as 3% on the purchase price. Down-payment values are decreasing nationally and even can be felt in the Bay Area where we have the 4th highest value of Downpayments in the country. A steady overall decrease nationally is strengthening the buying power of my generation as a whole.
For my generation and those who are willing and able to purchase their first Bay Area home, we can all feel more secured in our journey toward Bay Area real estate ownership. Buying a home is a significant part of life, and is always stressed as something very difficult to accomplish. However in a market that is gaining value by the day as well as increasing volume, it is satisfying to know that steps are being taken by those in the generation ahead of mine to secure our future.
Your Los Gatos Real Estate Experts,
Synoptic Real Estate Group
Data Source: First Time Home Buyers – Down Payment Declines}