Over the past few years, millennials in real estate has been a big discussion topic. The growth of the economy is working in the favor of millennial homebuyers. Millennials make up 45 percent of mortgages, in comparison to 17 percent of baby boomers and 37 percent of generation X.
While new buyers are likely to struggle a bit, older millennials are likely to have more choices in the middle to upper price points, which means that they will buy more houses in 2019. As their needs for housing change, millennials are likely to remain the biggest homebuyers for the coming decade. The following are real estate trends that we should expect to see from millennials in 2019:
Social Media to Have a Continued Impact
Social media keeps influencing the buying habits that millennials have, because most of them have social media accounts. Since this generation relies heavily on social media presence and online reviews, millennials look online before they make buying decisions. This means that real estate professionals must have a strong online presence for millennials to consider working with them.
Real estate agents need to display homes for sale on social media, especially on Instagram, for them to appeal to millennial clients. Therefore, this means that strictly offline real estate professionals will not get a lot of business from millennials. Since millennials spend most of their time online, they find what they want there as well, which includes houses.
Willing to Build Equity
Millennials are getting more knowledgeable in terms of repairs and renovations. This means that they are more aware of the implications, work, and cost of renovations and repairs than previous generations were. Because millennials watch housing TV shows, they are more knowledgeable than their parents were and know what to look for when searching for homes.
Millennials have the ability to see past a wall that they can remove or some old wallpaper that can be replaced. This means that they have enough confidence to make homes look like their own when renovating them. This generation of people wants to be creative while staying in homes that are within their price range. If you want to build your equity, you should use The Urban Avenue to improve your uptown Dallas apartments, for instance.
Rising Interest Rates will Demand a Change in Buyer Strategy
Now, thirty-year fixed-rate mortgages are averaging about 4.94%. In this year, rates are likely to climb higher. This means that millennials buyers will need to stop and reconsider their strategies and purchasing power. Even a half point usually has a big effect on the affordability of housing.
This means that real estate professionals need to help their millennial clients to comprehend what they can afford to purchase in an ever-shifting market.
As the economy grows stronger, more millennials will have job security. This means that more and more of them will start to participate enthusiastically in the housing market. As you probably know, the levels of inventory are low, which will worsen the already bad rates of competition. In 2019, more homes will have multiple offers and the sellers will favor the higher bids for obvious reasons.
As millennials and boomers face off when buying homes, the competition levels will be higher. Both generations are after similar amenities such as smaller spaces with more upgrades and walk-able neighborhoods.
Clients are Prepared and Knowledgeable
Thanks to the internet, millennials are conducting their online research to make sure that they get into the housing market prepared. This means that they do not want realtors to show them houses because they can find houses online. Millennials want real estate professionals who can provide them with information that is not online.
For instance, they want realtors who can show them up and coming neighborhoods and offer advice about home inspections and negotiations. This means that millennials know what they want and are not afraid to get it.
As you can see, millennials are the major shareholders in the housing industry, so realtors should know how to approach them. Millennials are educated buyers, which makes a real estate professional’s job easier or harder depending on how you look at it.
Author: Ashley Lipman, The Blog Frog
At Latchel we take over property maintenance coordination giving property managers the time to focus on more important things.
We do this through our 3 core products:
Our after hours emergency service, which ensures you are never woken up in the middle of the night for a maintenance call again;
Our 24/7 emergency service, night or day, all day, every day, we’ve got you covered;
Our premium service, which is an all encompassing maintenance coordination product.
Across our reviews, we boast a 4.7 out of 5 stars for tenant satisfaction. Property managers who have switched to Latchel, on average, have reduced their time spent on maintenance to only 15 mins per day for every 100 units.
We improve the maintenance experience for everyone because at Latchel, we truly believe that you cannot get better by staying the same.