Buyers under the age of 35 are leading the way as consumer confidence in the housing market rises near all-time highs heading into the spring of 2017.
In its February installment of the National Housing Survey, Fannie Mae saw surging Millennial confidence in the housing market, even with mortgage rates seemingly poised to rise, and home prices at near-record levels.
Along with more job security and increasing income, Millennial home buyers are increasingly married with children – all three legs of the home demand stool.
Nearly half (49 percent) of Millennial buyers reported at least one child – up from 45 percent last year and 43 percent two years ago.
As with every aspect of the marketplace, young buyers with children are the key to shaping the future of real estate.
With more kids in tow, more of these buyers have abandoned their dreams of a Bohemian urban existence. Many are even settling for suburban settings as a suitable place to grow families.
The National Association of Realtors says just 15 percent of Millennial buyers chose an urban area in 2016, down from 21 percent just two years ago.
At present, a limited supply of existing starter homes for sale is creating extreme competition for Millennials, most of whom are first-time buyers.
New construction of starter homes is increasing, but builders favor a slow and measured approach to projects to avoid any potential for labor and financial shortfalls.
A significant boost in new and existing inventory would go a long way to ensuring the opportunity for more Millennials to reach the market.
Though almost all Millennial real estate customers peruse the voluminous data available on the Internet before buying, they are also the age group most likely (92 percent) to contact a “flesh and blood” agent.
Buyers and sellers of all ages — but especially younger and often DIY-minded consumers – appreciate a real estate agent’s ability to dissect information and coach them through the complexities of a real estate transaction.