2015: The Return of the Millennial Home Buyer
This will be the year of the First Time Home Buyer in Indianapolis. Millennials are very savvy at finding information online and this is their year! We are here to assist you with your real estate needs. After dealing with foreclosures for the last 10 years, our team has seen a LOT. We have negotiated a LOT. We can put those tools to use for you while we navigate negotiations on Purchase Agreements and Inspections/Inspection Responses.
Let us help you make wise decsions in one of the biggest investments in your life!
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Earlier this month, Zillow predicted that millennial buyers (under the age of 35) will become the largest group of buyers, overtaking Gen X (35-50 years old) by the end of 2015. Dr. Stan Humphries, Zillow Chief Economist, explained:
"Roughly 42 percent of millennials say they want to buy a home in the next one to five years, compared to just 31 percent of Generation X, and by the end of 2015 millennials will become the largest home-buying age group. The lack of home-buying activity from millennials thus far is decidedly not because this generation isn't interested in homeownership, but instead because younger Americans have been delaying getting married and having children, two key drivers in the decision to buy that first home. As this generation matures, they will become a home-buying force to be reckoned with."
Two days later, Realtor.com also projected that Millennials will be a driving force in the housing market next year. In their 2015 Housing Forecast, they claim:
“Households headed by millennials will see significant growth as a reflection of economic gains. Millennials will also drive two-thirds of household formations over the next five years. Next year's addition of 2.75 million jobs and increased household formation will be the two key factors driving first-time buyer sales.”
Has the Millennial Home Buyer already re-entered the market?
AEI’s International Center on Housing Risk also released their first First-Time Buyer Mortgage Share Index this month. The report revealed that the percentage of first time home buyers may have been underestimated in 2014. According to the report, the percentage of first time buyers “averaged an estimated 46 percent over the 12 months ending October 2014”.
That number far exceeds other numbers reported by the National Association of Realtors and others.
Bottom Line
The Millennial generation is growing up, finding jobs, getting married and starting families. Homeownership will definitely be the next step.
Christine Farkas,
Managing Broker
Keller Williams Western Realty
2211 Rimland Drive, Suite 124
Bellingham, WA 98226
Phone: (360) 603-4751
Chris@FarkasTeam.com
www.ChristineFarkas.comBellingham Real Estate Blog
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