REALTOR Magazine by the National Association of Realtors shares a great article on the 5 Millennial Real Estate Trends in 2019. The surge of millennials now pursuing homeownership has largely attributed to the rise in new, first-time home buyers - ultimately increasing the national homeownership rate to 64.4% in the third quarter of 2018.
Realtor Magazine shares some insight from Dana Bull, a real estate agent with Sagan Harborside Southeby's International Realty in the Boston and North Shore area. Based on her experience with working with millennial clients, Dana shares some trends to expect when marketing to this generation of buyers.
1. Rising Interest Rates Will Prompt Buyers to Change Strategy - With mortgage rates rising to a seven-year high, with 30-year fixed-rate mortgages averaging 4.94%, and likely to climb over 5% this year, more buyers are pausing and reevaluating their purchasing power and strategy.
2. Increased Competition From Baby Boomers for Properties - According to a study, 30% of millennials purchased homes for $300k + this past year (up from 14% in 2013). Buyers in different generations are competing for the same homes and similar amenities, including walkable neighborhoods and smaller homes with more upgrades. As a home seller, you must cater to different generations when marketing your home.
3. Willing to Put In Sweat Equity - Thanks to HGTV, millennials are becoming more savvy to renovations. Bull says, "Millennial buyers are still far more aware of the work, costs, and implications of a renovation than their parents would have been. Popular TV shows mean a more educated millennial buyer who knows what to look for in terms of red flags. But also has more confidence around renovating a home to make it their own and the ability to see past outdated wallpaper or a wall that can be easily removed.” With rising rates, clients need to get creative while staying in budget.
4. Clients Who are Well-Researched and Prepared - Millennial buyers are doing their online research! They want agents to show them homes they can't find online. What neighborhoods are up and coming? Which properties will gain value?
5. Social Media's Continued Impact - Social media will continue to influence millennial home-buying habits. This generation relies on online reviews and social presence to make purchasing decisions. Whatever your position is within the real estate industry you must have a strong online reputation to cater to this market. Instagram is the most essential for appealing to millennial clients.
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