Millennials are Skipping Starter Homes for Their Dream Homes

Millennials Are Skipping Starter Homes for Their Dream Homes

Millennials Are Skipping Starter Homes for Their Dream Homes | MyKCM

A new trend has begun to emerge. With home prices skyrocketing in the starter home category, many first-time homebuyers are skipping the traditional starter homes and moving right into their dream homes.

What’s a Starter Home?

According to the National Association of Realtors (NAR), simply put, a starter home is a one or two-bedroom home (sometimes even a small, three bedroom). “Prices vary widely by market but starters on average cost $150,000 to $250,000 while trade-up and premium homes cost upwards of $300,000.”

Finding Their Forever Homes Now

A recent CNBC article revealed that there are many factors that delayed older millennials (ages 25-35) from buying a home earlier in their lives. The aftereffects of the Great Recession teaming up with larger education costs forced many to either remain living in their parent’s homes or to rent.

With the economy continuing to improve, many millennials have been able to break into better-paying jobs which has helped spur down payment savings. As the dream of homeownership comes closer to reality, many millennials are saving for their forever homes.

According to the latest statistics from NAR, 30% of millennials bought homes for $300,000 or more this year (up from 14% in 2013). Diane Swonk, Chief Economist at Grant Thornton weighed in saying, “They rented for longer. Now they’re going to where they want to stay.”

More and more millennials are settling down, getting married, and starting families, which is a huge factor driving them to look for larger homes.

Increased competition in the starter home market has also been a driving force in waiting to afford their dream homes. Inventory in the starter home market is down 14.2% from last year, according to research from Trulia. This has driven prices up and has led to bidding wars.

Many first-time buyers who were originally looking for starter homes are realizing that for just a little bit more of an investment, they could afford trade-up or premium homes instead.

Bottom Line

If you plan on purchasing your first home this year, let’s get together to determine how much house you can afford. You may be pleasantly surprised.  As your local San Ramon Realtor, I am available to answer all your questions.  Give me a call at 925-400-7007 or KernerHomes.

Should I Wait Until Next Year to Buy a Home?

What If I Wait Until Next Year to Buy a Home?

What If I Wait Until Next Year to Buy a Home? | MyKCM

Do I Wait a Year to Buy a Home?

We recently shared that national home prices have increased by 6.7% year-over-year. Over that same time period, interest rates have remained historically low which has allowed many buyers to enter the market.  The big question is, should you wait a year to buy a home?  If you missed the report, go to http://www.KernerHomes.com or call Jason Kerner, your San Ramon Realtor at 925-400-7007.

As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Reporthome prices will appreciate by 5.2% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 5.2% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

What If I Wait Until Next Year to Buy a Home? | MyKCM

Bottom Line

If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.  If you would like to discuss your individual situation, give me a text or call at 510-400-7007.  As your San Ramon Realtor with 16 years of experience, I would be happy to help.

Spring Forward Housing Market

Housing Market Springs Forward by San Ramon Realtor Jason Kerner

Housing Market Springs Forward

By Jason Kerner, San Ramon Realtor

Just like our clocks this weekend in the majority of the country, the housing market will soon “spring forward!” Similar to the tension in a spring, the lack of inventory available for sale in the market right now is what is holding back the market.  Windemere, Gale Ranch, Bridges and other parts of San Ramon are experiencing this shortage of inventory.  To search available homes, download my app at http://app.nexthome.com/Kewu

Many potential sellers believe that waiting until Spring is in their best interest, and traditionally they would have been right.

Buyer demand has seasonality to it, which usually falls off in the winter months, especially in areas of the country impacted by arctic temperatures and conditions.

That hasn’t happened this year.
Demand for housing has remained strong as mortgage rates have remained near historic lows. Even with the recent increase in rates, buyers are still able to lock in an affordable monthly payment. Many more buyers are jumping off the fence and into the market to secure a lower rate.  To find out what your home is worth, let my 16 years of experience help you figure out the most comparable value.  Or, you may use my home valuation calculator at http://kernerhomes.smarthomeprice.com/

The National Association of Realtors (NAR) recently reported that the top 10 dates sellers listed their homes in 2017 all fell in April, May, or June.

Those who act quickly and list now could benefit greatly from additional exposure to buyers prior to a flood of more competition coming to market in the next few months.

Bottom Line
If you are planning on selling your home in 2018, let’s get together to evaluate the opportunities in our market.  Call me for more specific information regarding your home needs at 925-400-7007.  Make it a great day!

2 Homes Just Listed in San Ramon Windemere

2 Homes Just Listed in San Ramon Windemere

Come take a tour with San Ramon Realtor, Jason Kerner

One of my favorite activities is bike riding.  As a San Ramon Realtor, I enjoy biking the neighborhood to tour upcoming and newly listed homes.  This knowledge helps incoming home buyers find the perfect niche for their family and lifestyle.  Living in the neighborhood, knowing the sellers and agents also helps give me the edge on upcoming properties.  Sometimes, it is possible to find homes before they are listed on MLS.  This gives my buyers the edge on finding homes in a popular market.  Please click on the link to see details about 2 new homes that just listed near Sherman Park: San Ramon Windemere Homes

The San Ramon neighborhood and Las Trampas Regional Park area offers incredible biking experiences.  Today, I rode by Sherman Park in Windemere.  This neighborhood offers easy access to San Ramon’s award winning school district and community center activities for locals of all ages.

If you are looking for a home in the gorgeous neighborhood of San Ramon Windemere, text me at 925-400-7007.  As your local San Ramon expert with over 14 years of experience, I would be happy to help you find your dream home.