The Waiting Game for Millennials May Be Over

The Waiting Game for Millennials May Be Over

DAILY REAL ESTATE NEWS | FRIDAY, JUNE 26, 2015
Millennials are primed to gain market share in the second half of the year as more decide to take the plunge into home ownership, according to a consumer behavior survey of more than 12,000 respondents conducted by realtor.com®.
Last year, first-time buyer market share decreased as the year progressed and dropped to 27 percent in the summer, according to data from the National Association of REALTORS®.
"This year, we're seeing an increase in millennial demand that points to a strengthening first-time buyer demographic," says Jonathan Smoke, realtor.com®'s chief economist. "As the economy continues to grow over the next few years, we can expect first-timers to return to a healthy level of 40 percent of the market. A return to that level would add approximately 15 percent to the number of total homes sold."
The National Association of REALTORS® reported earlier this week that a surge in first-time home buyers last month helped lift existing-home sales to the highest level in nearly six years. The market share of first-time home buyers in May rose to 32 percent of existing-home sales transactions, matching the highest share since September 2012.
First-time buyers are critical to a healthy housing market, Smoke says.
"Historically, they’re the largest demographic of home buyers and can have a dramatic impact on housing," Smoke says.
Realtor.com® notes that since the beginning of this year there has been a slight increase in older millennials – those between the ages of 25 and 34 years old – visiting its website and mobile applications for home searches. The share of traffic by older millennials looking for homes to purchase rose to 23 percent, compared to 21 percent in January. Meanwhile, realtor.com® reports that the share of those looking for rental properties fell to 20 percent from 26 percent in January.
Also, realtor.com®’s analysis notes that 65 percent of 25 to 34 year olds surveyed said they intend to purchase a home within three months, up from 54 percent in January.
Source: realtor.com®

Popular posts from this blog

Advice Young Adults Need to Avoid Buyer’s Remorse

Advice Young Adults Need to Avoid Buyer’s Remorse March 4, 2019 Most young adults have financial regrets about their home purchase, a new Bankrate survey shows, but much of their grief could have been avoided with proper planning. That’s where you come in: Younger buyers have a need for more professional guidance about the costs of homeownership. Sixty-three percent of millennial homeowners—more than any other generation—expressed buyer’s remorse, most often pertaining to closing costs, home maintenance, and other hidden expenses, according to the survey of more than 2,000 consumers. “When you buy a house, you can’t call the maintenance company or a landlord to fix major issues; it’s all on you,” says Luis Rosa, a financial planner in Henderson, Nev. Extra expenses, such as needing a new air conditioner, furnace, or water heater, often catch first-time buyers by surprise, Rosa adds. “I always advise home buyers to create savings buckets and open a savings account
Read more

Housing Slowdown Doesn’t Scare First-Time Buyers

Housing Slowdown Doesn’t Scare First-Time Buyers March 4, 2019 Despite recent declines in home sales, sluggish growth in single-family home construction, and mounting affordability concerns, first-time buyers are outperforming other segments of the market, according to a new report released by Genworth Mortgage Insurance. “The first-time home buyer market has been more resilient during the [housing] slowdown compared to repeat buyers,” writes Tian Liu, chief economist at Genworth Mortgage Insurance. About 482,000 first-time buyers purchased homes in the fourth quarter of 2018. Though that’s 3 percent lower than a year ago, it bests the 7 percent year-over-year decline in repeat buyer activity, according to the report. “This is a reminder that first-time home buyers differ from other buyer groups in terms of why they buy,” Liu notes. “Their purchase decisions are more likely driven by the fact that many are starting families and reaching peak homebuying ages. Even
Read more

What Buyers Should Ask After a Home Inspection

What Buyers Should Ask After a Home Inspection October 9, 2018 You are here Home News and Commentary Daily News What Buyers Should Ask After a Home Inspection Share Facebook Twitter LinkedIn Print October 9, 2018 After an inspector has finished a home report, buyers may feel overwhelmed by any flaws that might have been found. That’s why it’s important they take the opportunity to learn more so that they can move forward confidently in the transaction. A recent article at realtor.com® recommends home buyers ask their inspector clarifying questions like: “I don’t understand this; what does it mean?” or “Is this a major or minor problem?” and “Do I need to call in another expert for a follow-up?” Home inspectors are bound to uncover something in a home; no home is perfect. But the majority of the problems they uncover will likely be minor. Have the home inspector clarify which problems fall within the “minor” or “major” categories. Keep in mind: “The inspector can't tel
Read more