Although millennials hope to own a home one day, many say the down payment is their biggest barrier when it comes to purchasing one, according to the latest Country Financial Security Index^.

Fully forty-six percent of millennials and forty percent of Americans overall cited affording a down payment as the greatest financial barrier to homeownership, with the second most cited reason for Americans overall being that rent is more affordable (18 percent).

"Purchasing a home is much more than paying for a place to live; it's a major investment of both time and money," said Doyle Williams, an executive vice president at Country Financial. "Homebuyers should look beyond the initial cost of the down payment to the expenses of maintaining and protecting a home before making the investment. Some may not think it's worth the cost and effort at this time in their lives, but for many, owning a home is worthwhile."

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Although the down payment continues to be a barrier for most Americans, it's not stopping them from purchasing a home. In fact, many Americans reported making small down payments to afford their homes.

More than half of Americans (54 percent) reported putting down 10 percent or less of their mortgage loan on a new home purchase, while one in three (36 percent) said they put five percent or less of their mortgage loan on their down payment.

When it comes to age, millennials are the most eager homebuyers of the bunch. They are even the most likely to purchase a home in the next one to two years when compared with other age groups: 18-34 (21 percent), 35-49 (6 percent), 50-64 (6 percent), or 65 and older (5 percent).

If given $25,000 tomorrow, more millennials (26 percent) would rather put this newfound money toward a down payment for a new home or pay off a mortgage than use it to pay off their credit card debts (17 percent) or student loan debts (16 percent). By contrast, most Americans between the ages of 35-49 would rather pay off their credit card debt (33 percent) or invest it (20 percent).

While buying a home is a priority for millennials, other age groups have different concerns. Most Americans aged 35-49 selected paying off debt (67 percent) as their greatest priority, while those aged 50-64 selected retiring (72 percent). For the majority of Americans overall, paying off debt is a top concern.

Home ownership is a top priority for most millennials, but the stark reality is that two-thirds of homeowners are still working to pay off their mortgages.

Eleven percent of Americans say that 40 percent or more of their salary goes toward their monthly mortgage payments, while one in five American renters (21 percent) claim to spend 40 percent or more of their salary on rent.

Almost half of American renters (47 percent) say they believe a mortgage payment would be less expensive than their rent, but 24 percent admit they have no plans to purchase a home within the next four years. This discrepancy potentially stems from half of Americans thinking it would take four or more years to save up for a down payment.

Country Financial's Security Index also found that many Americans are working to pay off their mortgage into retirement age. In fact, more than one in three Americans are still doing so after they turn 65 years old (33 percent). Nearly seven in 10 Americans ages 50-64 are paying off a mortgage (68 percent), and eight in 10 Americans ages 49 or younger are as well.

"It's important for those nearing retirement to consider how much home they need for their lifestyle, and how much maintenance they're willing to take on," continued Williams.

Nonetheless, only about six percent of American homeowners regret or somewhat regret purchasing a home, suggesting that despite the extensive time it can take to pay off a mortgage, Americans still feel that it is a worthwhile investment.

Limited inventory and rapid price appreciation have kept sellers firmly in the driver's seat for several years as the United States recovered from the housing market collapse--but that appears to be changing.

In 20 of the 35 largest metros, market conditions favor buyers more than they did a year ago, according to the Zillow Buyer-Seller Index. It is based on the share of listings with a price cut, how long it takes to sell a home, and the sale-to-list price ratio. By comparing each metro across time, this analysis shows whether the market is cooler (favoring buyers) or hotter (favoring sellers) than it was in the past.

California markets have seen the biggest shift toward buyers since last January, led by San Jose, which has seen the most significant swing. San Francisco, San Diego, Los Angeles and Denver round out the top five markets where buyers will have an easier time navigating the market than they would have in recent years.

Even though San Jose and San Francisco have cooled exceptionally, they are still the hottest markets compared with others around the country, markets where listings see few price cuts, homes don't stay on the market for long, and sale-to-list price ratios are higher. In these two Bay Area markets, home prices are so prohibitive, the typical buyer must put more than a 20 percent down to keep mortgage payments at or below 30% of monthly household income.

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San Jose buyers would need a 49 percent down payment, or $614,100, nearly three times as much as the national median home value. Buyers in San Francisco (43 percent), Los Angeles (43 percent) and San Diego (31 percent) would also need to put down more than 20 percent.

"It is no surprise that the markets which pushed the bounds of affordability over the housing recovery are now experiencing significant cooling," said Skylar Olsen, Zillow Director of Economic Research. "As down payments and mortgage payments far outpaced incomes, buyer demand eventually exhausted itself. Those buyers looking in cooling markets will likely welcome the relief, although the entry price is still high. Inventory is returning and spending more time on market, meaning their decision making can be made with a cooler head."

While some of the hottest markets slowed down over the past year, others have become more seller-friendly. Miami, which tends to see large fluctuations, has seen the biggest overall shift toward favoring sellers over the past year, with homes selling about a week faster than they did a year ago.

Markets That Have Cooled 

Markets That Have Heated Up (Ranked By Biggest Increase)

By Dave Hershman

In any sales seminar you will be taught important sales skills such as how to overcome objections and close a deal.  The problem with this training is that you will not likely learn the real objection from the customer.  The customer may be telling you your price is too high, but consumer surveys indicate that people do business with people they like.

Price is important but a customer is not likely to react to a low rate if they do not trust the messenger.  It is much easier to say to you that they received something better somewhere else instead of saying you are someone with who they did not want to do business with.

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You have to have confidence.  If you don’t present yourself as confident, it will be virtually impossible for a customer to trust you or to even like you.   What are signs of lacking confidence?  Over the phone it can include:

1. Hesitation in delivering answers
2. Not knowing what to say when
3. Talking instead of listening
4. Lack of a confident tone

The next question is, if you are lacking confidence, how can you develop it?

If you do not know what you do not know…stop faking it and start learning.  You need an educational plan that makes sure you are constantly learning. The plan should be multi-faceted and include live classes, reading articles and books, online courses and more.

If the problem is projecting your knowledge, you need to practice! Role-playing is an excellent method of practicing conversations with prospects. Talking on the phone to customers is not practicing. As a matter of fact, this may result in ingraining bad habits.

To gain confidence, you should also go out and join organizations and participate in their activities.  Here are two possibilities:

1. Join a networking group through the chamber of commerce or BNI. Volunteer to present information to the group or an individual who wants to learn.
2. Join Toastmasters, a non-profit organization dedicated to helping members become public speakers. It is inexpensive to join, and most areas have local chapters.

If you use these methods, they will lead you to networking opportunities and more business – while you learn and gain confidence. Put yourself in situations where you are surrounded by others and can network.  Force yourself to engage in conversations.

The key to networking is to listen!  Those who have confidence do not feel the need to talk about their knowledge constantly. They continue to learn. Confidence is a major key to success that may be missing from your arsenal.

https://youtu.be/9Ao6HaWTvPU