There are indications that some millennials might be singing that Rolling Stones chorus —“Tiiiiiiiiiime is on my side. Yes it is.”— when considering homeownership. Rates, home prices, and a lack of inventory have prompted this generation to take their time. (While seemingly defying time, the septuagenarian rockers are teasing new U.S. concert dates.)
Trying to defy time might not be the best choice for millennials considering homeownership. In general, they are much older than their parents and grandparents were before buying a home. Buying that first home when taking out a 30-year mortgage means the house won’t be paid off until they are close to being in their 70’s.
According to Fannie Mae, consumer housing outlook has dropped — despite a fair amount of optimism about the economy as a whole. It seems almost counterintuitive to have a drop in the housing outlook if the outlook on the economy is fairly good.
This means many potential young homebuyers shouldn’t be waiting out the housing market. Tick, tock, tick, tock. Time is going by and as most non-millennials will attest — they are not getting this time back.
While delaying a home purchase may have made sense at certain times in the not-so-distant past — like when the Stones were in their 60’s — there are no indications that homebuyers are going to see dramatic changes any time soon in rates, home prices, or starter home inventory that would make waiting beneficial.
Sure, things might not be “perfect” for buyers — but they are not so bad that if you have the means to buy you are not in the market. Millennials should be singing “Start Me Up” when considering that home purchase, only pausing long enough to go to the concert if the Stones do come to town.