2019 Millenial Home Buying Trends & Market Predictions
Millennials will buy more homes than any other demographic in 2019.
Don’t forget: millennials aren’t kids anymore. In fact, the oldest millennials are turning 38 this year!
That age demographic includes those born between 1981 and 1996. Even though statistically they are waiting longer to settle down, start families, and purchase homes, they are a big demographic and will be making a lot of real estate purchasing decisions in the next few years.
As second home real estate agents, how will that rising buying force impact our business today, and over the next few years?
NOTE: the full content inspiring this post first appeared on episode 54 of the Selling the Dream podcast. Don’t miss hearing the whole episode, and learning about special guest Matthew Gardner’s market predictions!
2019 Market Predictions
Some home buyers look at the market, and think: should I wait to purchase a home?
While we don’t want to say the word ‘recession,’ the reality is that business a life cycle, filled with ebbs and flows. If we were to use a baseball analogy, then we would say that we’re in the 8th inning.
If you’re thinking of waiting to purchase a home, contemplating the impacts of a recession and potentially lower prices, look at the facts.
In the last 100 years, there have been forty-seven recessions. How many of them have been related to real estate?
That’s right – only one recession has been directly linked to a housing market crash.
It’s important to remember:
- Homes are steadily increasing in value
- Mortgage rates are slowly increasing
If you’re thinking about buying a home, don’t forget the one and ten rule: every 1% rise in interest rates decreases your buying power by 10%. Those “small” numbers add up quickly.
Even through recessions, there are bumps in the value of homes.
There are a few commodities that all humans will need, regardless of the economic situation, and housing is one of those needs.
Will Millennials Purchase Second Homes?
So how will the second home market be impacted by millennial buyers? How will that impact our work over the next 15, 20, or even 25 years?
Millennials View Real Estate as an Investment
Sixty-nine percent of millennials believe that real estate is an astute investment. With the rise of rental services such as AirBnB and VRBO (Vacation Rentals By Owner), owning a second home feels logical.
Millennials Will Do Their Research … But They Want YOUR Help!
Just the mention of some of these data warehouses can make some realtors shudder….but millennials love them! They will do their research: learning about the market and finding out their options.
But when it comes to making a purchase, they’re going to want to work with a full-service brokerage. They will want to work with the best, and to know that you are going to be there with them every step of the way! After all, purchasing a house is one of the biggest purchases that they make in their life, so they want to make sure that they do it right!
When you show yourself as the best brokerage to work with, they will come to you!
How do you see millennial home-buying impacting your business? Tell me more in the comments, and if you’ve
Don’t forget, if this is helpful, make sure you subscribe to the show, so you can get this content, and helpful tips and tricks in your ear weekly. Here’s where you can find us:
Last of all: remember, you’re not selling a home. You’re selling the dream.