The prognosis for California’s housing market in 2019 is promising. With a vast number of millennials reaching home-buying age, the demand from first-time buyers is forecasted to increase as chief economist for Realtor.com Danielle Hale points out, “Millennials will continue to make up the largest segment of buyers [this] year, accounting for 45% of mortgages, compared to 17% of Boomers, and 37% of Gen Xers.” The millennial demographic will also support demand long term as we look to 2020 and beyond, “…2020 is expected to be the peak Millennial home buying year with the largest cohort of millennials turning 30 years old. Millennials are also likely to make up the largest share of home buyers for the next decade as their housing needs adjust over time,” Danielle Hale asserts.
What More Millennial Home Buyers Means for Sellers
Millennials are the internet savvy generation and do their research before house shopping. Here are a few things they look for:
- Easy online shopping. The home search starts online for millennials. Make sure you invest in high quality photos, mobile accessibility, aerial video footage, and a social media presence.
- Quality over size. Square footage matters. Although, millennials are often more concerned with how sustainable and usable each space is.
- Low-maintenance lifestyle. Millennials are used to living in the age of high-tech advances and Amazon Prime. They’re looking for energy-efficient homes with smart appliances. If you don’t have them, they’ll look elsewhere or lower their offer so they can upgrade after they buy.
What More Millennial Home Buyers Means for Buyers
If you’re in the market for a single-family home, expect some competition. Follow these tips:
- Know what you want. Decide what you absolutely need in a home.
- Write a letter. Sending a personal story to your seller might be just the thing that makes you stand out from similar offers. Nashville couple Abby and John included a personal letter when they made an offer on their home. “We sent the sellers a personal letter with our offer,” Abby said. “The best thing you can do is to include in the letter things you love about their house. If they have a deck or screened-in porch, tell them how you envision using the space. We did that and the sellers accepted our offer—out of multiple offers—within 24 hours.”
- Hire an experienced pro. Last year, 90% of millennial home buyers used real estate agents to purchase their homes. Getting the help of a professional allows the transaction to go smoother and more efficiently for all parties involved.