Now Is a Good Time to Be a Move-Up Buyer in Southern California

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Now is a great time to become a move-up buyer. Here's why.

According to the National Association of Realtors, Generation Y and Millennials are 34% of the entire buyer pool. People between 35 and 49 years old, aka Generation X, make up 27% of the buyer pool. People between ages 50 and 68 make up 29% of buyers while buyers aged 69 years and up are 10% of the market.

Overall, 88% of recent buyers financed their home purchases. When you look at Generation Y, 97% of buyers financed their home. The Silent Generation, or buyers aged 69 and older, only saw 61% finance home purchases.

When it comes to a home purchase, the National Association of Realtors says that younger buyers finance larger shares. The typical Generation Y down payment is 7% while the Generation X down payment is 10% and the Silent Generation down payment is usually 22%.

Buyers have a variety of sources for a down payment on a home. Younger buyers typically draw from savings, while older buyers use proceeds from the sale of a previous home. Younger buyers are more likely to use a gift or loan from a friend for their down payment.

What does this all mean? Since we're seeing a large group of Millennials buying homes, it makes sense for you to move up into a new property. 2015 was the first year where we saw a lot of contingent sales go through without any issues. Sellers are beginning to accept contingencies easier than in years past.

If you're a move-up buyer looking for something bigger, this is the time to buy. Interest rates are low right now, but they are expected to rise in 2016. With so many Millennials looking for their first homes, now is a good time to sell yours and move up into your dream house.

If you have any questions, give me a call or send me an email. I would be happy to help you!