More and more millennials are starting to move out of their parents’ homes and secure their own places of residence in New Jersey, New York and elsewhere in the U.S.
Homebuyer optimism, as measured by Fannie Mae’s Home Purchase Sentiment Index (HPSI), is on the rise as prospective buyers of houses sense that the cost of purchasing a home will not necessarily rise over the next year.
Why Are People More Optimistic about Buying Homes?
Fannie Mae, also known as the Federal National Mortgage Association, tracks consumer attitudes in a variety of areas, including optimism that home prices will go up. The HPSI, which is determined by homebuyers’ answers to six questions in an annual survey, increased in February 2016 by a full percentage point over the previous month.
Doug Duncan, the chief economist for Fannie Mae, attributes the recent increase in homebuyer optimism to a growing economy, with millennials finally feeling confident about their job prospects while at the same time earning higher annual incomes. Duncan said that rising home prices and home sales are usually connected to rising incomes.
Interestingly, a lot of millennials are choosing to rent apartments first and then purchase homes once they have saved some money and become more comfortable with the idea of owning a house. According to Duncan, more than 90 percent of millennials surveyed for the HPSI indicated that they eventually want to own a house.
To learn more, view the Yahoo.com article, “Finally, Millennials Are Moving Out of Their Parents’ Basements (and Driving up Rents).”
If you are thinking about buying a home or selling a home in New Jersey, Joel R. Spivack, Esq. is an experienced real estate lawyer who will assist you throughout the home buying process. Contact Mr. Spivack now to schedule a free consultation and discuss your options.