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The next wave of home buyers is forming
Reported by Elia Powers, St. Louis Beacon

St. Louis - The online news publication, The Beacon, a non-profit organization dedicated to bringing news that matters to our region, reported this week about a positive trend affecting the local real estate market.

Reporter Elia Powers suggests that "people in their 20s and 30s are enthusiastic about the housing market and the prospect of home ownership." Demographers have labeled this group Generation Y. One of the first major surveys to identify this positive trend was conducted by the Concord Group, a real estate consulting firm.

The study's goal was to identify what will motivate members of Generation Y as they enter the home buying market. A sample of 200 people in the 20-to-34 age range was taken. Most of them live in urban areas, work in service-based professions, are college graduates, have a household income of less than $100,000 and currently rent.

From the Concord Group's survey, the Beacon reported that "most respondents see real estate as a good financial investment. Half of the young professionals say they are 'very likely' to buy a home within the next three years. Also, half of those surveyed said tax credits or lower interest rates would motivate them to buy a place sooner."

The Obama administration and congress agree that this type of first-time homebuyer can be the engine that will help drive the real estate market out of its present slump. The $8,000 tax credit provided by the American Recovery and Reinvestment Act of 2009 is one major incentive for first-time homebuyers. But the current real estate market's historically low interest rates, depressed home prices, coupled with a large home inventory available, could motivate Generation Y into buying.

"While current homeowners have seen their property values take a nose dive," offers reporter Powers, "the upshot could be that more young people will have a chance to buy houses that just last year seemed out of their price range."

The study revealed the most popular answer for the question, "How old will you be when you buy your first home?" was 25-30. Generation Y's cash strapped parents will be happy to know only 40 percent of young people say they are planning on receiving help for a down payment on the purchase of their next home.

St. Louis Beacon: The next wave
Posted by Customer Service on April 17th, 2009 7:51 AMPost a Comment (0)
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