Struggle is real for Millennial Home Buyers
As this year accelerates - so does the shortage of homes. Ellie Mae, the software company that analyzes mortgage data has spit out some interesting facts over the last couple of months that indicates the demand will not stop and for some great reasons! Although we initially thought Millennials would wait longer than most generations to settle down and buy a home - we were wrong. In fact their presence in the marketplace is creating some really interesting disruption and with that comes new challenges to the market and Real estate agents alike. Just comparing January 2016 to January 2017 we saw a 3% rise in Millennials in the marketplace. That's right in January of 2017 Millennials dominated 45% of all purchase loans! While it's fantastic that the next generation is making investments now - what does this mean for the real estate market?
If you remember back to your econ-101 classes you might remember that as supply decreases, and demand increases then typically price increases as well. This rudimentary rule also applies to our market right now. Compared to just February of last year there are 3% fewer homes on the market - yet home values have rose 7% or more in some areas. With numbers like these you are safe to assume it is a great time to be selling your home - but what does it mean for the newbie buyers?
Millennials will need to get strategic to get the home of their dreams and for a few reasons. Although millennials are typically buying smaller, starter homes - the baby boomers are also downsizing to this same style home. The only difference is they have more experience and more time to watch and analyze the market. With homes selling faster than ever and the market demanding fast action Millennials are smart to pick a Realtor with true negotiation skills. When you are competing with multiple offers - the art of negotiation is what can get your offer accepted over the highest bidders.
Moral of the story Millennials - get a great Realtor - leverage your lower interest rates - be quick on your feet - and get the home of your dreams!