Younger Buyers Flood the Home Market

By: Ylan Q Mui; Michael Rosenwald: REALTOR® Magazine Online
Younger buyers are jumping into the real estate market, despite their large student-loan debts, minimal credit histories, and lack of savings. Like many Americans, this younger set is afraid that waiting will push them out of the market for good.

Thirty-nine percent of homebuyers in 2004 were 18- to 34-year-olds, and 12 percent of first-timers were under the age of 25, according to the NATIONAL ASSOCIATION OF REALTORS®

Some young buyers are resorting to interest-only mortgages or co-buying with friends to make the purchase. Real estate practitioners say they've noticed more young buyers get emotionally attached to a particular home.

They also report these buyers tend to be less experienced when it comes to negotiations, often accepting terms that leave them vulnerable to future financial turmoil.