We have discussed the effect of millennials on the housing market before, but they are expected to have an even larger impact in 2017.
In 2016, millennials make up about 33% of the housing market and are under the age of 40. According to research conducted by Zillow, 47% of people buying and 63% of people selling homes are doing so for the first time. The way these millennials operate the market has a direct effect on how successful the market is on a large scale. With all of the available resources out there today, this is perhaps the most well-equipped generation we have had running the market. While there are lots of options out there, a large part of the process is the millennials beliefs in how they want to approach the housing market. Zillow was able to uncover the trend that many millennials share their parents and grandparents beliefs on what they look for in a home.
Romantic notions about homeownership include looking for reasonable mortgages, a home that reflects themselves, one in a sensible neighborhood, and a home that is a good investment. This encourages millennials to approach the real estate market with oth savviness and caution. A vast majority of millennials are able to use all the resources available to them, as well as incorporate other things such as their own social networks to assist them in this process. 2016 is a fast-paced and high-priced market that truly requires the extensive research and savviness the millennials are using. It has also been a popular trend amongst millennials to rely on their real estate agent for more than just home advice- they wish to be informed about the variable topics that this blog covers. The study also discovered that millennials tend to rent longer than previous generations but also have a strong desire to live in the suburbs (more than half).
In order to predict the trends that will most likely occur next year in the housing market, it is imperative to analyze the research done by companies such as Zillow. Without this extensive research, we would not have enough information about buyers to make accurate predictions about the market next year. As opposed to the third of homebuyers that millennials make up now, it is expected to rise about 29%, from 33% to 52% according to the National Association of Realtors (NAR). This information is based on people who predict they will be buying homes during the spring and summer months of 2017. This will most likely cause an increase in the demand for suburban homes around the country as millennials are getting married and having children. Affordability and inventory will be concerns of 2017 as this surge occurs in the market. Since most millennials reportedly plan to purchase homes in the warmer months of the year, it is advised that if looking to buy, you should look at homes during the winter months so as to avoid the intense competition that you may otherwise face. These trends will be motivated by the millennials desire to improve their financial situations. Speak to a BridgeView real estate agent today if you are thinking about purchasing a home in 2017 so that you can get ahead of the millennial surge!