As you may have seen in our housing market predictions for 2017, Millennials are taking over the homebuyer market for this year, as they have been for the past few years. The misconception has been that Millennials are more focused on renting and shy away from purchasing a home. In fact, according to the National Association of Realtors, this is the fourth consecutive year where Millennials make up the largest sector of homebuyers — 34% of the market to be exact. So chances are, if you’re reading this article, we are talking about you!
Although Millennials are not reluctant about purchasing homes this year, they are entering the home buying market later than previous generations due to changes in the economy. According to an article from NBC News, most of the Millennials looking to purchase a home are first time buyers who are more focused on monthly payment cost than the full price of a home, because they see it as a long-term investment. In many cases, the want to invest in a long term or “forever” home may coincide with the want to start a family. Since this means bypassing a starter home, many homebuyers in this generation want a larger home that they will not outgrow in a few years time.
If we are talking about location, a lot of Millennial homebuyers today have already rented in cities or a city-like setting, so they are looking to the suburbs to purchase a home. An ideal home needs to have 3-4 bedrooms, and plenty of square footage; they are interested in more square footage than older generations look for. Another must-have feature is great outdoor spaces, which is always a priority here at Miller & Smith.
Another trend that is noticeable with this generation is that they are using technology to find homes, rather than going straight to an expert. Not to say that real estate agents are eliminated from the equation, but they are more commonly hired for their expertise in the actual transaction rather than the search for a home. Nela Richardson, a chief economist at Redfin, told NBC News that Millennials are leaving no stone unturned when it comes to getting a deal, whether it is negotiating an agent’s commission, or getting a break on closing costs.
If you are a first-time homebuyer (Millennial or not), be sure to check out RealEstate.com, a simple website for your home search. This new website from Zillow Group focuses on the complete cost of purchasing a home, such as including HOA, broker fees, etc. Plus, you can customize your home search by monthly payment or total cost.
Millennials know what they want in a home, and we are here to give it to them! Visit our website to learn more about all new homes from Miller & Smith in Virginia and Maryland.