Millennials remain hesitant about buying homes - Tucson News Now

Millennials remain hesitant about buying homes

A for sale sign hangs in front of a home in Phoenix (Source: KPHO/KTVK) A for sale sign hangs in front of a home in Phoenix (Source: KPHO/KTVK)
MESA, AZ (3TV/CBS 5) -

With home values up and more buyers shopping around, the Valley's housing market is doing fine, but it could be doing a lot better.

Phoenix Realtor Erik Jensen said there's a big group of potential homebuyers out there called millennials, who are still a bit hesitant about purchasing a house or condo.

"They aren't as hesitant as they are cautious," Jensen said. "They do their research when they come to you. They've pulled neighborhoods they like and know what homes are currently on the market."

According to a recent study by Bank of America:

  • 94 percent of millennials aren't comfortable going into debt;
  • 88 percent avoid risky investments;
  • 79 percent don't want to dip into their savings at this point in their lives.

It all adds up to the fact that folks under the age of 32 aren't buying a lot of homes.

Real estate expert Bobbi Ryals of HomeSmart said there are a number of reasons for that.

A lot of millennials prefer the flexibility of renting instead of owning. Some can't afford a down payment. Others are worried about a future housing crash like the one in 2009 that forced many of their parents into foreclosure.

"They don't want to get in a situation like their parents," Ryals said. "They want to own, and make sure it's a good value, and going to make money down the road."

Brandi Porter, 22, is a recent Arizona State University graduate who thinking about buying a house, especially now, with the cost of rent going up around the Valley.

"I want to make sure I can stay here, and throwing money toward a rental seems like throwing money away," she said. "I could put money toward a home that I own."

Housing experts insist that getting more millennials to buy homes in 2016 will go a long way in determining the future of the Valley's housing market.

"If we really want to see a healthy real estate market in Phoenix, these millennials are going to have to jump in," Realtor Tricia Amato said.

Copyright 2016 KPHO/KTVK (KPHO Broadcasting Corporation). All rights reserved.

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