In a precarious housing market, one thing is for certain–more millennials than ever want to buy homes. As a massive demographic, their habits and propensities have a tremendous effect on real estate trends. That said, here are five shifts you can expect to see from millennial buyers this year.
It’s Millennials Vs. Boomers
Who thought these split generations would be competing for the same houses, but it’s happening. The National Association of Realtors reports the percentage of millennials purchasing homes over $300 thousand has risen from 14 percent to 30 percent since 2013. As a financial bracket formerly dominated by baby boomers, these younger first-time buyers are encroaching rapidly, a pattern expected to gain momentum in upcoming years.
Millennials Do Their Research
While many homebuyers rely on Realtors for information about houses, millennials have the research chops to find this data online. Instead, they look to professionals for guidance about up-and-coming neighborhoods and negotiation/inspection procedures.
Watch for Shifting Strategies
With interest rates at a seven-year high (averaging 4.94 percent), young homebuyers must re-evaluate their game plans. This means homeowners and Realtors will need to help buyers analyze perks and recognize what they’ll be getting for their money. A shifting market means all parties have to reach into their grab bags and get creative with selling.
Fixer-Uppers Make a Comeback
Thanks to popular television shows on networks like HGTV, millennials understand (more than other generations, perhaps) renovations–the implications, cost, and hard work that come with making a house their own. This awareness can be both positive and negative for sellers since buyers’ willingness to overlook outdated wallpaper or closed floor plans might mean quirky houses get more attention. On the other hand, these same buyers know what red flags to watch out for, so sellers should make sure big-ticket items like plumbing and foundation are in good standing.
Don’t Underestimate Social Media
Tempting as it may be to skip social media marketing, millennials still rely heavily on digital reviews and online reputations. This means ensuring homes get showcased on multiple platforms will make a big impact on selling power. In addition, real estate professionals should take full advantage of social media through every phase, including marketing their services before, during and after homes go on the market.
To appeal to a growing millennial market, sellers and real estate professionals must understand this group’s thought processes and tendencies. In 2019, it’s all about adapting and looking forward.