Local Real Estate: Are Young People Buying?

Real estate news seems to differ from month to month, and one group that has been speculated about is the young buyers.

In some parts of the country, homes sales have not improved among young people. And according to a Boston Globe report, the number of young people owning homes in Massachusetts dramatically declined -- about 20 percent -- from 2005 to 2010.

But local realtors say that's not the trend not true this area.

"I have a couple of young families looking to buy in North Andover," Rosemary Draper of said. "Lack of inventory is the major factor for lack of purchases, not lack of interest. It is a bit harder to qualify for a traditional loan, but FHA loans are more popular. Anyone trying to get back into the market after recovering from a job loss or short sale, is having some challenges."

The market's low prices are keeping buyers interested, and even in these uncertain times there are young professionals and young married couples hoping to get a piece of the American dream.

"Many young families are buying homes in the Andovers," Peggy Patenaude of Prudential Howe & Doherty said. "Regardless of what the economic times are, the more things change, the more things stay the same. No matter what is happening in the world, the economy etc, life goes on. Couples still fall in love, get married have children and want to own a home. On the other hand, other people are retiring and downsizing and still, couples get divorced, relocate for their jobs, etc."

In fact, these days young people are aiming even higher in their purchases.

"Younger buyers are scrutinizing property as they should before taking the leap, however when they find the right property I have seen no hesitation to act," said Lisa Sevajian. "The difference I am seeing with this generation is that instead of buying a smaller entry-level single family or condominium, many are jumping into the market with larger homes. I believe this is happening because the prices are very affordable, rates are extremely low, making it possible to buy more house than we typically see, and savvy buyers understand that they may be in their first property for much longer than traditional first time buyers, who stay for about 3 to 5 years."

The Warren Group, publisher of Banker & Tradesman, recently reported that home sales in Massachusetts increased almost 35 percent in May, despite home prices stagnating and in some cases taking a dip. And the North Andover and Andover markets have seen a steady increase in sales over the past year. And many buyers have been young people.

"So, although the prices of houses may change, young people are attracted to Andover and North Andover for the proximity to Boston, the safe, rural setting and the desire for their children to attend good schools," Patenaude said.