Millennial homebuyers are reportedly resorting to selling their cryptocurrency in order to afford a down payment for a house purchase.
Millennials Turn to Alternative Means for Funds
A survey was recently conducted by Redfin, a real estate brokerage, that discovered some interesting findings. In March, it surveyed 2,000 U.S. residents. However, it focused on the more than 500 respondents aged between 24 and 38. It was this age group that indicated their intention of purchasing a property in the next 12 months.
According to Mortgage Professional America, it found that millennials were turning to different means of raising money. A majority, 69 percent, stated that they had saved for a down payment from their monthly pay. Yet, not everyone was following the same route.
The survey found that 36 percent had taken on a second job. A further 13 percent indicated that they had resorted to taking money out of their retirement funds. Interestingly, 10 percent said they had sold their cryptocurrency. Even though the figure isn’t particularly high, it shows that millennials are investing in the market.
Not only that, but it demonstrates the potential the cryptocurrency market has. If the required down payment is $10,000, one Bitcoin provides a lifeline for many millennials. At the time of publishing, Bitcoin is currently worth $6,587, according to CoinMarketCap.
However, it’s far from what it was mid-December when it was valued within touching distance of $20,000.
Volatile Nature
Notably, though, the market remains volatile. Because of this, prices can go up and down, so knowing when to sell is important. This is certainly true if millennials are relying on their cryptocurrency for a down payment.
At the end of June, the price of Bitcoin dropped below $6,000 twice. This was the result of negative factors taking place in the market. Since then, industry values across the board have risen. However, from mid-December until today’s price, Bitcoin is down nearly 67 percent. Such a factor shows that market prices are far from guaranteed.
Despite this, though, as millennials are one group likely to invest in cryptocurrencies, it shows they have other means of obtaining money if they haven’t saved through a monthly paycheck. Not only that, but the co-founder of BitMEX is of the opinion that Bitcoin is likely to rise to $50,000 by the end of this year.
If such a projection does come true, it presents valuable opportunities for millennials who are relying on their crypto assets for their down payments.
Are you a millennial who would rely on cryptocurrency to purchase a house? Let us know in the comments below.
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