By now you have probably heard that the largest homebuyer market is the millennial buyer.
According to the 2016 U.S. Census Bureau, Millennials are the largest population sector
Millennials are the largest group of home buyers for the past 3 years****
Millennials represent 34% of total home buyers****
33% of active home buyers are ages 25-34*
39% of Millennial buyers prefer single family homes*
First, Millennial Buyers are practical, they are NOT impulse buyers! 94% of these buyers start their search using online sources.* By the time they set foot in your home, chances are they have done their homework. They know all about the community, the tax rate, and the school district, and proximity to major transportation. These buyers focus on these key factors first. Then they determine their price range.
66% noted that the quality of the neighborhood is a key factor.****
Millennial buyers are well prepared. They know what they can afford because they usually get pre-approved for a mortgage at the beginning of their home search. They identify a price range they are comfortable with, and they stay within their budget! 50% noted that housing affordability was a key factor.****
Unlike previous generations, Millennials are extremely practical about what features they seek in a home. The actual style of a home is less important than the property features. They are not pre-occupied with square footage either! In other words, they focus on the condition of the home and the updates. New windows, heating/air conditioning, and new kitchen appliances are all important because Millennials seek energy efficient homes. As a result, 2 story family rooms and entries are not as important because they consume more energy to heat or cool.
56% recently surveyed prefer a smaller home with a bigger yard.**
These buyer preferences have brought about renewed interest in the traditional styles of homes. Ranches, split levels, and colonials offer Millennials manageable living space with future expansion potential.
This is important because buyers are trending toward buying a home for the long term, rather than purchasing the start up home now and trading up later. Uncertainty about future mortgage interest rates, as well as the cost of moving and closing on a house, have Millennials focusing on making the most sensible purchase for the long term.
So what does this mean for the home seller? Renewed demand for the traditional home and property! The Millennial buyer is getting back to basics. If your home is moderately sized, equipped with energy efficient appliances, recent roof, siding, windows, kitchen and baths, then it will appeal to this largest segment of buyers. Furthermore, if the style of your home and size of your property offers expansion potential, that will be attractive to millennial buyers.
Since 63% of Millennials seek a conventional mortgage***, which means they are borrowing 80% or less, they are more qualified to buy your home. Conventional mortgages are less complicated to obtain and there is little risk that the home will not appraise for the purchase price.
Finally, since our local housing market offers the benefits of reasonable property taxes, good schools, and convenience to major transportation, Millennials will be eager to purchase in our area.
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