Some millennials may be gambling on falling home prices
TAMPA, Fla. – Nov. 14, 2018 – Millennials in the Tampa Bay/St. Petersburg region appear increasingly willing to wait until the housing market cools down before purchasing their first home.
Surveys show millennials want to own a home – about the same percentage as baby boomers and GenXers – but like most generations of first-time buyers, they’re price sensitive and wary of market whims.
Nearly 80 percent of millennials who own homes think it’s a good time to sell, a recent survey from ValueInsured found – but only 38 percent of would-be purchasers in that age group think it’s a good time to buy, an 8 percentage point drop from a year ago. That wide gap in buyer-seller attitudes could result in more starter homes on the market but with fewer buyers willing to pay current prices.
«Florida buyers are savvy,» ValueInsured founder and CEO Joe Melendez says. «Many have been hit hard by the cyclical nature of the market and have learned their lesson to take advantage of a down cycle.»
Among all age groups, almost two-thirds of Florida residents interested in buying a home plan to wait for a «meaningful correction» in prices before pulling the trigger, the survey found.
«We are willing to wait six months, even a year to make sure we get a good deal,» says Stephen Sutton, a Tampa Bay-area homebuyer.
However, it’s not just millennials. The survey found that almost two-thirds of potential Floridian homebuyers may wait for a «meaningful correction.»
Source: Tampa Bay Times (11/13/18) Brink, Graham