As a Cypress, CA Realtor (and for surrounding areas), I can confidently say that there has been quite a jump in Millennials diving into the Cypress real estate market. Such an observation actually correlates with the recent data that has been published by Zillow and Ellie Mae. Studies are indicating that Millennials now comprise the largest chunk of house hunters. Although many are young adults just starting in their adult life, they do understand the value of home ownership.
Accordingly, they are swapping out the “Cypress apartment searches” with the “Cypress homes for sale”. They are switching from filling their landlord’s pockets to accruing wealth for themselves. They are trading the smaller, confined spaces to the beautiful, larger town homes and single family residences in Cypress, CA.
When asked why they are jumping into home ownership all of a sudden, in particular when years of previous reports suggested otherwise, their answer was pretty logical.
Cypress, CA Realtor Shares Why Millennial Home Buyers Are Jumping into Home Ownership
- They are looking for more space to live in.
- They are looking for more space for their pets.
- They are looking for extra room to work from home and support their entrepreneurial and/or remote/virtual career paths.
- They are looking for an additional room to allot for overnight guests.
- Additionally, although some may not have children at the moment, they are looking for a home in a great school district so when the time for children does arise, they already are all set. And as we know, the schools in Cypress, California are above par.
Our Millennials are not looking for a temporary home. Rather, they are looking for a larger space in Cypress, California to grow and live in.
Furthermore, while many believe they have to wait until they have saved the “standard” 20% for a down payment prior to entering the Cypress real estate market, or any market, the truth is that does not have to be the case. In fact, the majority of Cypress’ Millennial home buyers have not saved the 20% down payment. Instead, they have done their research on the growing number of loan programs available for home buyers and therefore are taking advantage of those that allow for smaller down payments.
For instance, an FHA loan typically only requires 3.5% down if your FICO is 580 or above. Moreover, an FHA loan can even be a zero down loan if the borrower receives a gift fund to cover the 3.5% down payment requirement. Other programs such as a VA loan allow for no down payment if the borrower has a military service history. The options are plenty.
Aside from low to no down payment programs, our Cypress borrowers have uncovered ways to overcome such objectives as not meeting the traditional income requirements. Since more and more individuals are choosing the entrepreneurial and/or “gig economy work” route, hopping from one part-time job or short-term contract to the other, they are taking advantage of the newly emerging “bank statement” mortgage programs. Under these programs, banks typically rely upon reviewing 12 to 24 months’ worth of deposits to one bank account and a profit and loss statement for the business, in lieu of the traditional two years of tax returns, W-2s, and payroll checks.
In short, the Cypress real estate market is seeing a growing shift towards more Millennial Cypress home buyers looking to take advantage of home ownership opportunities.
If you’re looking to buy a home in Cypress, California, or sell a property, please contact me to chat. As a Cypress Realtor specializing in our neighborhood, I have the strategy and experience to help you buy low and sell high.