Millions are flocking to buy their first home

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Millions are flocking to buy their first home

According to Century 21 CEO Mike Miedler, the American dream of owning a home could fall short due to shortage of stock.

On Monday, Miedler appeared on FOX Business Mornings with Maria and said millennials are storming the housing market, and Generation Z is not far behind. They all look for this piece of the American dream, Maria Bartiromo told Miedler. We would literally have to double our development in order to keep supply that this big generation is going into the market, because we need it. Despite the increased median home prices, Miedler pointed out homeownership remains more affordable than it was and lower interest rates have also helped younger buyers with their first big purchase.

We're at a place where interest rates are putting affordability in people's pockets, Miedler said. In fact, folks don't realize this even today with the prices where they are, but it is still more affordable than they were literally in the last decade. Redfin released a report earlier this month indicating the home sales dropped 5% last month and new listings plummeted 9% across the country.

As a result, the tightening inventory is driving many house prices higher. Almost half of homes sold in September were above asking prices, according to Redfin data.

A lot of them are moving out of urban core centers, Miedler said. This work from home phenomenon is still taking place. They can really go anywhere, so it's interesting and they definitely want that piece of the American dream.