This is my final post discussing why home ownership in the Dayton Metro area may be more affordable than Millenials think. Throughout the course of this series, I have discussed a number of reasons why right now is a perfect opportunity for some younger buyers to enter into the housing market- but that certain realities, which exist today, will not last forever.
Real estate markets are local in nature, and Dayton is one of the most affordable cities in the county in which to own a home. Yet, even Dayton’s market is currently suffering an inventory problem- there are simply more home buyers than there are home sellers. This can create a frustrating experience, particularly for new home buyers who are not expecting such a cutthroat experience. However, there are areas in which starter homes are not only available, but affordable– and I urge younger buyers to open themselves up to looking at areas besides the suburbs.
Many younger buyers are unaware that they are even able to qualify for a loan. FHA loans are designed to help first time buyers realize the American Dream of home ownership. In many instances, a buyer can qualify for a loan by putting as little as 3.5% down and having a credit score of 580 or higher. Even those with a credit score between 500-580 may still qualify for a loan with a higher down payment. For potential buyers who do not believe they are able to get a loan, I would urge them to sit down with a lender and discuss their options.
One of the greatest perks of home ownership is that it is an investment and that it helps an individual build equity in an asset. With rental prices climbing higher, home ownership is an opportunity to lock into a monthly rate- and over time, owning a home can be cheaper than rent. This is partially due to extremely low mortgage interest rates- but rates are expected to climb steadily over the next two years. Potential buyers who choose to wait will likely have a higher rate in the future, leading to higher monthly payments, and restricting how much house they can purchase.
Buying a home is without a doubt, a huge commitment, and the biggest purchase most people will make in their lifetime. With that said, it also can provide security, stability, a sense of ownership, and is many individual’s primary asset. It is understandable that many young adults are not sure if they are ready to take the plunge, but as I have explained, there are several reasons why they may with to consider purchasing a property now. If you are interested in learning more about the home ownership process, contact a qualified Realtor today. I assist home buyers looking for homes in Dayton, Beavercreek, Centerville, Cincinnati, Clayton, Englewood, Oakwood, Fairborn, Harrison Township, Huber Heights, Kettering, Miami Township, Miamisburg, Riverside, Springboro, Trotwood, Vandalia, Washington Township, West Carrollton, and Xenia.