Rochester might sit atop Realtor.com’s list of the hottest real estate markets, but can the emerging generation take advantage of it?
In May, the real estate listing service released the data. It ranked markets based on where homes sell in the least amount of time and where the site gets the most listing views. In other words, Realtor.com ranks markets based on how fast homes sell and how many searches there are in that particular market.
According to the site’s data, the median days that a home in Rochester, NY sits on the market is a measly 31. In other words, the typical home will sell in about a month.
While the news is glad tidings, does it matter to Millennials?
To qualify for most loans, you need to keep your credit score above 700, with a score of 619 on the FICO score and lower being qualified as “bad.” According to the Federal Reserve reports, 90% of mortgages taken out in 2019’s first quarter were by people who had credit scores of at least 650, while 75% had a score of 700 or higher.
Millennials — those between the ages of 23 and 38 — have had a trying path towards financial wellness, having had to deal with crushing student loan debt and the unfortunate circumstance of dealing with the 2008 economic crisis’s fallout. Consequently, Millennials have an average FICO score of only 665, according to Experian.
It gets worse. Experian also reports that Millennials have an average credit card balance of $5,231, carry an average student loan debt of $34,770, and have a total debt of $80,666 and up on average.
The upshot is that houses in Rochester cost less than the average price of a home. The Huffington Post reports that the median home price is $188,900. According to the Greater Rochester Association of Realtors, the region’s median sale price is $140,000.