Millennials skipping starter homes for larger homes - WSMV News 4

Millennials skipping starter homes for larger homes

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Real estate experts say first-time home buyers are no longer purchasing starter homes. (WSMV) Real estate experts say first-time home buyers are no longer purchasing starter homes. (WSMV)
NASHVILLE, TN (WSMV) -

Adam Crain and his wife bought in The Nations in Nashville three and a half years ago.

He said it was an "up and coming" neighborhood at the time. 

"Our realtor advised us that it was a good move and to get in quick, so we did," said Crain.  

The Crains aren't alone.

The National Association of Realtors said 30 percent of millennials bought homes priced above $300,000 this year.

That's up 14 percent from five years ago. 

"Millennials are showing a bit of a sense of urgency. They have been for a couple years," said Jeff Checko, the relocation director at RE/MAX Advantage.   

Checko said he sees it all the time.

Interest rates are low.

Rent rates are high and there aren't many cheap homes out there, so in many cases, friends just get together and invest.

"I am seeing law students and post grads and some people right out of school deciding to buy a duplex together or buy a house together," said Checko.  

Checko said interest rates are starting to tick back up, so he does recommend buying, but he said, make sure you know exactly what you're getting into. 

"Because if you buy a property that has astigmatism that's going to be tough for resale that could set you further back," said Checko.  

For people like Crain and his family, it's a move, that's paid off. 

"It was a very good investment," said Crain.

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