The EXTINCTION OF THE STARTER HOME explained

Hey, everybody, it’s Janine Sasso or your local Chicagoland realtor. And in today’s episode, we will be covering the reasons behind skipping the starter home. We’re sure you heard about the trend. People are skipping the starter home. But what’s behind it? One of the biggest things is long term planning. The home needs to fit into a long term plan, long term meaning at least ten years that the House needs to be perfect for the person who’s buying it. Our first time homebuyers are understanding that equity gain needs time, and in order for that to happen, where they don’t have to stress out about it, they are giving that equity growth the most amount of time possible. Now, they’re not only considering things like paying down the equity, they are also putting into perspective rising cost of repairs, of association costs and, of course, taxes. With all of those items being on the rise, it will take longer for them to gain the equity they need to also cover the selling cause that is oftentimes cutting in at about 6% off the purchase price.

What also contributes to this is the later start in homeownership. This is mainly attributed to currently due to the high amount of debt that will not let the borrower qualify in their early twenties anymore, as they have to pay off the student debt first before their debt to income ratio is in line with what the lender wants. Let’s also investigate the condo as a starter home. This one is nearly extinct and one of the main reason is the amenities for condos. While they are absolutely fabulous for some renters to have the pool a back, a basketball court to have fitness centers available, doormen in a parking, there are so many great things that come with it. But once it becomes time to actually be the one footing the bill for the association separately from your mortgage, many first time homebuyers are cringing away from that high number and are opting for less of those in-house amenities and opting more for a single family home closer to the three bedrooms that is there to be there forever. So what’s our biggest takeaway from this?

The biggest takeaway is that today’s home buyer, once that house that is not only move and ready, but it’s also the house that will adapt to all their future phases in life. Growing family and abilities in older age. The yard space that lets children play in the dark run home front to entertain and needs to have it all. So finding your perfect home is definitely a little challenging, but you can rest assured that it was the right professional guidance on your side. There should also be a piece of cake. My name is Janine Sasso, and I am your local Chicagoland realtor.

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