Nowadays, increasingly more millennials are looking for homes. The rate of homeownership in the country rose by 64.4 percent in the last months of the past year. This can be largely attributed to the increase in first-time homebuyers. Here are some of the amazing real estate trends for 2019:
Willing to Put in Equity
Because of the increasing number of home renovation TV shows, millennials are more knowledgeable than previous generations when it comes to home repairs and renovations. This means that a millennial buyer knows more about the cost implications and work that goes into a home renovation.
For instance, if houses such as the Urban Avenue’s downtown Dallas apartments need renovations, a millennial homebuyer might be able to estimate the cost. Thanks to home renovation TV shows, the millennial is more educated and thus knows the red flags to watch out for when house hunting. This also means that millennials are more comfortable with revamping houses to make them fit their needs.
When looking for homes, millennial buyers are able to see past outdated wallpaper and small rooms to see the homes of their dreams. As the interest rates keep going up in 2019, new home buyers prefer to be creative while staying within their price range.
Social Media Has a Big Impact
The buying habits of millennials are influenced by social media. This is mostly because the current generation relies heavily on online reviews as well as social media presence before they make buying decisions. When it comes to house hunting, millennials prefer to work with real estate professionals with strong online reputations.
This means that real estate agents need to showcase their properties on social media sites such as Instagram. When they do this, they will appeal to millennial buyers and attract them on a larger scale.
Strategies Will Change
The rising rates of interest will prompt a strategy change. Because millennials do not want to spend more than they have to on housing, they will have to change their buying strategies by reevaluating their purchasing power. Real estate agents will need to spend more time explaining to their millennial clients what their money can buy in this changing housing market.
Well Prepared Clients
Millennials are doing their research online and going into the house-buying process prepared. The buyer no longer relies on the real estate professional to provide information about homes because it is available online. Instead, millennial buyers need realtors who can share pertinent information that they cannot find online.
The realtor needs to share un-researchable information such as properties that will gain value in the next few years as well as up and coming neighborhoods. They should also offer guidance in terms of inspection and negotiations.
More Competition from Baby Boomers
As millennials get older and find better jobs, they will gain more purchasing power. According to reports, thirty percent of millennials have bought homes worth 300,000 dollars and more in the previous year. What does this mean? It means that baby boomers and millennials are looking for the same homes.
This trend will only increase in the year 2019. Because both generations are looking for the same amenities, which include smaller houses with more upgrades and safe neighborhoods.
Buyers with a big age difference and different viewpoints are competing to buy the same homes. This makes the job of agents and sellers more difficult – as they will be catering to different generations.
Conclusion
Millennial buyers rely on social media to make buying decisions, are willing to put in equity, are changing their buying strategies, are well-researched, and competing with baby boomers for the same houses.