MILLENNIALS ARE FINALLY COMING OUT FROM HIDING!!

For 4 or 5 years, the real estate industry has bemoaned the slow rate that this age group is stepping up and buying their first home. They are the largest age group since the baby boomers, but have been more reluctant than previous generations to purchase a home. There appears to be several reasons for this. First of all, a large segment of this population has taken on enormous student debt which may limit their ability to purchase what they want in a home. Secondly, many watched the issues that their predecessors faced in what I call the “Great Real Estate Depression” of 2006 to 2012. Upside down equity positions caused an enormous number of short sales and foreclosures. A lot of these folks have chosen to stay longer in their parents’ home or to rent with friends to share the living cost.

But that seems to be changing. RisMedia Housecall  reports that 32% of current homebuyers are millennials right now. That represents the largest single age group of current buyers. Zillow reports 47% of the buyers today are first time buyers and 63% of the sellers are doing so for the first time. If there ever was a time that our industry needed experienced, knowledgeable Realtors, it is right now. Although millennials are very independent in their methods of doing business and are very tech savvy, probably more so than most agents, they do recognize, as further reported by Rismedia, that honesty, trustworthiness and reputation are the key factors in choosing an agent. They tend to rely on friends, neighbors and relatives to recommend the agent they choose. I have posted one of the articles that I have quoted here on my web site, Mnhomesbydave.com under the Real Estate News tab. We welcome these young, smart and obviously careful people into the American Dream of home ownership. Thanks for reading.
David Feerhusen

David Feerhusen

Broker/Realtor, CDPE, GRI, CRB
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