According to the National Association of Realtors, existing home sales are at a 10 year high and homes are selling about 2 weeks faster than last year. What’s driving the change? Millennials, of course!
Millennials have entered the real estate market thanks to better, more stable employment and increased savings. Millennials have grown to represent about 30% of homebuyers with over 50% of new home buyers or first time home buyers being a Millennial.
How does this affect the housing market and home buying?
Typically, Millennials prefer trendier areas and inclusion. In the past, they were are more likely to rent and may prefer the community life of a condominium or townhome. Most are attracted to a master-planned community that incorporates businesses and dining. They are incredibly tech-savvy and many turn to online sources for home buying, or choose Realtors willing to work by email and text message. Realtor and agents will need to have a strong presence online and on social media platforms to gain Millennial business. Generally, they prefer to use someone they have found through their community network, so good word of mouth and referral advertising is a must. With this information in mind, online real estate giant Zillow is launching a new website geared specifically to first time buyers – RealEstate.com.
Some of the challenges faced by Millennials in the housing market are unique to previous generations. They are entering a market with decreasing inventory but increasing prices. Many Millennials will skip the starter home, making them more likely to wait for their true “forever” home to be available. Most want a home that will require little remodeling and little upkeep – they don’t want weekends full of cleaning and repairs. Green building materials and energy efficiency are high the list of desires. Formal dining rooms are so last generation! Millennials want and open floor plan to allow guests to mingle and network. A must in a Millennial home? A well-designed home office with plenty of wall space and outlets for their tech.
With this generation, the area’s mobile carrier strength and wi-fi presence can make or break a sale. It will be an adventure to see how this emergence of new buyers enhances the home buying market.
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