Shrinking down payments, millennial demand transforming real estate: Expert
Saving up for a down payment on a house is not easy, but real estate expert Samantha DeBianchi said finding the necessary resources may not be such an impossible feat.
DeBianchi, who is the founder of South Florida-based DeBianchi Real Estate and the first female realtor to be featured on Bravo’s ‘Million Dollar Listing Miami,’ told FOX Business that homebuyers are being allowed to put down as little as 3 percent.
“We were seeing that last year and we are seeing that again this year,” she told Stuart Varney on Wednesday. “You’re looking at 3 percent, 5 percent, [and] 10 percent down.”
Although people may have a job and good credit, they don’t have enough money to put down because home prices are too high. However, there is a secondary market that will accept that loan, she said.
“They don’t want to spread themselves too thin because they need to afford furnishing that house [and] other items,” she said.
But there’s also another group that is expected to emerge and change the real estate market this year.
“We’re really going to count on millennials this year, for 2019, to really transform our market,” she said. “Because that’s when we know prices are coming down, the market is slowing slightly, more inventory is coming on the market.”
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What’s more, millennials who were born later in the generation are expected to jump into the market.
“I will tell you I’m 34 years old — I’m the ‘aging millennial’ — I have so many millennials that are buying,” she said. “Then you have a 26 year old — that’s a millennial too, which is interesting. They were renting, they’ve been sitting on the sidelines, they’ve been saving money, [and] they’ve been working on their credit.”
Millennials make up 30 percent of buyers, according to DeBianchi, which represents the largest amount of the buying pool.