Mortgage Monday - Ep. 024 Millennial's, Baby Boomers, AND Boomerang Buyers – OH MY!

Hello and welcome back to another edition of My Mortgage Monday Episodes…Guess What? Today is a special one!Today is #24 ……That’s right, 1,2,3, 4, carry the one, #24

That means it’s been two full years of my Monthly Mortgage Monday Madness….no too bad, right?? That’s two anniversary’s! Hey I know some marriages that haven’t lasted that long, so I think I’m doing pretty good, right?

But enough about me, let’s get down to some business…let’s talk about what get’s my Blood, boiling!

You know, the things that get on your nerves the most? Is when you hear “it's the right time to buy”, or, "OMG, you have to buy now", or, “you need to sell now while the market is "Hot"”; but what exactly does that mean, and have you ever asked yourself, why??

Well if you're anything like me,

I ask myself that all the time as I'm in the market to purchase another home myself, but I keep on running to the same issues of not being able to find houses that are

1. within my budget, or
2. if the house is in my budget, it flies off the market or has multiple offers......so I keep on asking why?These things keep me up at night, I’m talking cold sweats, loss of appetite, failed relationships.....well, at least two of the 3 things do ;)

So I started to do a little digging and started to peel back the layers of "The Real Estate Onion" to figure out, what the heck is going on and why so many people are running into bidding wars and I've read several articles and reports; one, from Freddie Mac, Equifax, other different credit reports on

why we are experiencing an onslaught of the following:

• baby boomers re-entering the market to find their "last house", because they’ve already purchased the big McMansion, kids are out of the house and now it’s time to find a house that fits their empty nest….
• then you have Millennials, entering the market for the first time, and guess what, they are looking at the same size of a home as those pesky baby boomers.

but, there is a 3rd group of buyers that no one is really talking about and they are starting to make some headway; and they are called:

• Boomerang Buyers

Ralph, are you just making up words at this point? The short answer, no. But the long answer is that boomerang buyers are not talked about enough, and I have to ask the question, why?

Well, because they haven't been in the market in the past 6 years and are now coming in with a "vengeance".

Well, who are these boomerang buyers??

Glad you asked...they are being defined as the people that experienced a major downturn with the housing crash of 2008.

These are people that:

• lost their jobs,
• lost their life savings, and
• whose credit suffered because of the crash

...and who are now entering back into the market.

Because their credit back inline, they've saved money for a down payment and closing costs (again), and they have been back within their employment for a few years and making more money!

Bottom line,

When you add up this concoction of Millennials, baby boomers, and boomerang buyers you get a supply and demand issue which ultimately causes house prices to increase while the supply remains low.

All this makes it extremely difficult to purchase a home within a desirable price point Which makes it even more important to have a Preapproval that is solid-proof and not just from from some online lender, who's all about quantity over quality, and who doesn't know the local market or the importance of being available during a bidding war.

As always, thank you so much for watching this month's episode of my mortgage Monday series, again, it was a special one …my 24th Episode and I have plenty more ahead of me.

Keep on the look out for other series I do have throughout each month ranging from a cooking show,

to restaurant reviews, as well as, my new open house series where I hop around Houston check out unique open houses and showcase amazing Realtors along the way.

So, if you are in the market for a home loan, don't forget, I Loan It. So You Can Own It.

We’ll see you next time and thank you so much for 24th months of continued support. See you next time .

?Ralph Tapia is a Mortgage Loan Originator located in Houston, Texas. He left the Oil and Gas Industry after 11 years all while he was dabbling in real estate over that same period before he decided to get his Mortgage Originator License and go full time. If you need home financing or have questions about home financing, he’s just a phone call away.

 RALPH TAPIA | Mortgage Loan Originator | NMLS# 1420289 | 1632 W Alabama Street | Houston, TX 77006 | C: 281.881.0612 | Assistant: 281.624.6866 |[email protected] | TO APPLY: https://www.nflp.com/ralphtapia

Network Funding, LP NMLS# 2297 | Licensed to do business in Texas | An Equal Housing Opportunity Lender | nflp.com