By now, millennials are causing change in every aspect of the U.S. and world economies. More millennials are pursuing homeownership now than ever before and their influence is being felt in the industry. Here are some trends that have developing and are expected to increase in the coming months.
With interest rates climbing and likely to go over 5 percent soon, many buyers to pause and reevaluate their purchasing power and strategy. For real estate professionals this means they will need to take more time to help clients analyze deals and understand what their money can buy in this shifting market.
Millennials are now acquiring more purchase power through growth in their careers. According to some experts, 30 percent of millennials purchased homes for $300,000 and higher in the past year, up from 14 percent in 2013. Real estate professionals will see more competition between millennials and boomers for the same homes. It is predicted that this trend will continue to grow in 2019. It will be a challenge for both sellers and agents to cater to two different generations in marketing homes for two different points of view.
Experts believe that access to resources like HGTV and YouTube has made millennials are savvier to renovations and repairs. Millennials are far more aware of the work, costs, and implications of a renovation than their parents were. Real estate professionals will need to keep this in mind as interest rates continue to rise in 2019 and they’re helping clients who want to get creative while staying in their price range.
Real estate professionals will need to be aware that these buyers will be more informed and prepared. Millennial buyers are doing their online research and are entering the market well-prepared. Millennial buyers will be expecting information from agents that they can’t get themselves. Things like neighborhoods that are up and coming, which properties stand to gain value in the coming years, and guidance when it comes to negotiations and inspections.