Budget – what budget? Recent trends have shown that homebuyers are prepared to blow budgets in order to become homeowners.

In fact, a third of homebuyers exceeded the upper limits of what they had planned to spend by an average $16,510, according to an Owners.com survey of more than 1,000 Americans who purchased a house within the last four years.

Why? Basic supply and demand. Or simply put: Price.

In an environment of rising prices, many houses on the market are drawing multiple offers, forcing eager buyers to bid up – and by a considerable amount.

In January, home prices nationally were up an average 6.3 percent from a year earlier, according to the S&P CoreLogic Case-Shiller home price index, with prices rising nearly 50 percent from their 2012 bottom.

But supply shortages, compounded by a strong job market fueling demand, have made prices soar – so much so that many prospective homebuyers who set a budget are now quick to go beyond it to land their dream home in their desired neighborhoods.

And millennials are most likely to splurge, with 40 percent going over budget by roughly $24,500 on average, according to USA Today. Thirty-four percent of Gen Xers exceed their limits by nearly $14,000 on average and 19 percent of baby boomers top their budget by an average $8,000.

But why are millennials more likely to blow their budgets?

As prospective first-time homebuyers, they often lack the experience to set a realistic budget – and keep to it – whereas older, more experienced generations like Gen Xers and Boomers are often savvier and more experienced.

Further, millennials are more likely to feel a sense of urgency due to their current living situations – often living with parents or roommates – and therefore grow increasingly uncomfortable, whereas other age groups are more likely to be current homeowners and have the luxury of staying put until they find what they want in their desired location and price range.

And with spring here, the temperatures – and market – are only going to heat up.

According to the Mortgage Bankers Association’s seasonally adjusted weekly reading, mortgage applications increased 4.9 percent from the previous week.

In fact, mortgage refinances and purchase applications have increased despite flat interest rates where the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances remained unchanged at 4.66 percent, with points unchanged at 0.46 – including the origination fee – for 80 percent loan-to-value ratio loans, according to CNBC.

So it’s understandable why homebuyers are willing – almost eager – to bust their budgets to get what they want. But real estate is a long game – and one that should be played strategically, thoughtfully and with the right team in your corner.

If you’re ready to brave the market and want an experienced, savvy team to help guide you to make the most informed decision on one the biggest purchases of your life, give the professionals at DeLeon Sheffield Company a call today.

Because at DeLeon Sheffield Company, ‘We’re More Than Realty; We’re Family.’