The struggle is real for millennial home buyers

Source: CNN Money

After years of many experts lamenting how millennials weren't interested in becoming homeowners, it turns out many are actually diving in. But they're facing a lot of competition. Millennials are the largest group of homebuyers, according to Ellie Mae, a software company that analyzes mortgage data. In January, millennials represented around 45 percent of all purchase loans, up from 42 percent the same month in 2016. And many expect more millennial house hunters to jump into the market this spring buying season. But their path to homeownership won't be easy. New buyers this spring will also be up against buyers who started looking last year, but still haven't bought a home. A shortage of available homes has driven up prices -- particularly among starter homes that tend to fall within first-time buyers' budgets. There were 3 percent fewer homes on the market in February compared to a year ago, according to a recent report from Zillow, and home values are up nearly 7 percent.