Younger people seeking homes are delaying their first home purchase but that has not ended their dream of homeownership all-together. The truth is that both generation z and millennials are taking their time to find a “dream home” that suits their specific interests. With tools like Pinterest available to the masses, anyone can start to map out the features of their favorite homes. In other words, the younger generations are simply being more careful before making an investment in their very first house.
Millenials Play The Waiting Game
Millennial homebuyers are content with waiting on their first home which can come with its own set of advantages. For one, they are likely to have more to spend when they finally take the leap and make an offer. This coincides with them being more set in their career path and having a stronger foundation on which to build.
Because of the online shopping culture, Millenials have gotten better at identifying certain features that they must-have —- whether it be in a home appliance, or the home itself. They have learned from the mistakes of their elders and have likely pledged to avoid some of the pitfalls that came with first-time homes for their parents.
The Economic Impact
Because young people are waiting longer, they are sometimes bypassing the starter home and jumping straight to bigger and better purchases. While these homes are of course more expensive, they are also more likely to remain as the person’s property for a longer period of time. Instead of jumping from house to house in their first few years as a homeowner, they might settle into a higher-priced home for the long hall.
What does this mean for real estate from an economic standpoint? Apartment renting will likely maintain its peak or go even higher, while starter homes may be dwindling. At the very least, newer homes in the lower price ranges are going to be expected to meet the minimum needs of a new consumer.
A Numbers Game for Realtors
Millennials are expected to make up 45% of homebuyers in 2020 which means agents will continue to find ways to capture real estate leads. It also calls on real estate agencies to find ways to facilitate the buying process for a younger generation. Because the largest group of homebuyers are now extremely tech-savvy, realtors are going to have to meet their demands. It is not all bad news for agents however, since they have growing opportunities to reach a new demographic of people and cater to their specific requests.
How Affordable are Loans and Rates?
3.5 percent is the minimum requirement for FHA loans. There also many other affordable options for new homebuyers and renters. While it is impossible to forecast forthcoming real estate shifts, there is enough optimism to believe 2020 will be a good time to buy. As millennials hit the 29 year old age range, they are likely to be in peak buying mode for the coming year.
Sometimes the idea of owning a home seems impossible, but if you contact the right realtor in Keller, TX, you can, in fact, find your DFW dream home. The Grove Team is here to help.