Millennials

2017 Real Estate Market: What Millennials Need to Know

A new report by Cicely Wedgeworth for realtor.com has shown that the 2017 housing market is going to be shaken up by an influx of prospective first-time millennial home buyers. Here is what you need to know:

The Great Real Estate Revolution Of 2017

According to a recent survey by realtor.com, in 2016, only 33% of people planning on purchasing a home were first-time buyers. This upcoming year, however, is slated to see a dramatic increase in this demographic, which is expected to jump to 52%, of which, a staggering 61% of perspective buyers are under the age of 35. This means that the 2017 real estate market will subsequently see an increase in competition for housing amongst first time home buyers.

Competition Will Be Intense

With this influx of first time millennial home buyers, the competition for housing within the real estate market will be more substantial than 2016. Jonathan Smoke, chief economist for realtor.com, recommends trying to “’avoid bidding wars and higher prices spurred by a potential increase in millennial buyers’” by considering a winter home purchase. When examining the 2017 real estate market, it is also important to investigate which types of properties will be the most sought after.

The Suburbs

In 2017, more millennials will be moving away from renting and towards first time home ownership. With this trend, we see a migration of this demographic away from urban areas and towards the suburbs. According to the recent realtor.com survey, both 50% of millennials and baby-boomers report interest in living either in the suburbs or outlying suburbs. This trend will create increased competition within the market for properties located in these areas.

Baby-Boomers And Millennials Competing Within The Real Estate Market

It seems that the suburbs are not the only thing that baby-boomers and millennials can agree on. With millennials prioritizing a sound financial investment, there will be a focus on “safety, privacy and more space” according to realtor.com. There is expected to be an increase in this demographic seeking single-family homes and townhomes. Babyboomers have a similar focus within their demographic, with 71% of perspective buyers seeking single-family homes.

With both demographics seeking these types properties, it can be expected that these single-family homes will be in high demands, driving costs upwards and availability down.

To read more, please visit: Realtor.com | First-Time Millennial Buyers Poised to Revolutionize the Real Estate Market in 2017

Seattle Ranks among Top 5 Cities in the Country for Rich Millennials

According to a recent article published by the Seattle Times, "nearly 4 percent of Seattle's millennial households earn more than $350,000 per year, a concentration that puts it in the top five cities in the U.S. "What's causing the income spike in the Emerald City? Zillow, who conducted the report, "attributes Seattle's high share of loaded youngsters to the city's tech-job boom and says the well-off whelps have helped create a bonkers housing market." 

As the article notes, "a high salary goes much further toward housing here than in the other cities that made the list" such as San Francisco, California; Arlington, Virginia; and Huntington Beach, California where home prices are substantially higher and residents are responsible for paying state income tax.

Millennial Moving Habits

A recent article published by Forbes outlines millennial moving habits, asking "why do millennials move?" As Maureen Henderson writes, while "the stereotype may have them shacking up Chez Mom and Dad . . . 59% of 18- to 35-year-olds currently live in a locale other than their hometown and almost 80% have moved at some point in their lives, not counting moves made to attend college." 

As Henderson continues, "the reasons that compel millennials to pull up stakes are a fascinating grab bag. 51% have changed locations for a job, while 48% say they've moved for lifestyle reasons or for a new experience. Less predictably, almost a third have moved to get away from family and friends, perhaps trying to loosen the apron strings with their helicopter boomer parents" and "a romantically-minded 46% report that they moved for love." 

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