Young buyers (Millennials & Gen Z) have waited longer than previous generations to enter the housing market for their first home. However, this hasn’t stopped them from dreaming about the home they will eventually buy. Many spend hours searching listings and building Pinterest boards of their favorite home features.
According to a survey from Open Listings, 70% of single renters are more likely to spend their Sunday nights swiping through house listings than dating profiles.
All that time window shopping has led 45% of millennials to expect the first home they buy to be their “dream home”! They are willing to wait longer, save more for a larger down payment, and are pickier about the listings they want to tour and the features that they want to see in their first home.
Waiting a little longer to buy a home than their parents or grandparents did has also helped young buyers become more established in their careers prior to making such a large purchase. Lawrence Yun, NAR’s Chief Economist, recently commented,
“Older millennials are now entering the prime earning stages of their careers, and the size and costs of homes they purchase reflect this. Their choices are falling more in line with their Gen X and boomer counterparts.”
In some areas of the country, high competition in the starter home market forces young buyers to wait longer. The extra money they save during that time opens their search to bigger, more expensive homes.
If this trend continues, older millennials will skip the starter home altogether, going straight to a trade-up or premium home instead.
Bottom Line
If you are one of the many young renters planning on buying your first home soon, let’s get together to help determine what type of home will best suit your present and future needs.
David Demangos - Keller Williams Realty Cell: 858.232.8410 | Realtor® BRE# 01905183 www.AwesomeSanDiegoRealEstate.com Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
San Diego Real Estate Expert | Global Property Specialist Certified Luxury Marketing Specialist | CLHMS Million Dollar Guild Agent Green Specialist | Certified International Property Specialist 2016, 2017 & 2018 Recognition of Excellence Award Winner SDAR
There are many questions about where home prices will be next year as well as where they may be headed over the next several years to come. We have gathered the most reliable sources to help answer these questions:
The Home Price Expectation Survey – A survey of over 100 market analysts, real estate experts, and economists conducted by Pulsenomics each quarter.
Zelman & Associates – The firm leverages unparalleled housing market expertise, extensive surveys of industry executives, and rigorous financial analysis to deliver proprietary research and advice to leading global institutional investors and senior-level company executives.
Mortgage Bankers Association (MBA) – As the leading advocate for the real estate finance industry, the MBA enables members to successfully deliver fair, sustainable, and responsible real estate financing within ever-changing business environments.
Freddie Mac – An organization whose mission is to provide liquidity, stability, and affordability to the U.S. housing market in all economic conditions extending to all communities from coast to coast.
The National Association of Realtors (NAR) – The largest association of real estate professionals in the world.
Fannie Mae – A leading source of financing for mortgage lenders, providing access to affordable mortgage financing in all markets always. Here are their projections of prices going forward:
Bottom Line
Every source sees home prices continuing to appreciate – just at lower percentages as we move through the next several years.
David Demangos - Keller Williams Realty Cell: 858.232.8410 | Realtor® BRE# 01905183 www.AwesomeSanDiegoRealEstate.com Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
San Diego Real Estate Expert | Global Property Specialist Certified Luxury Marketing Specialist | CLHMS Million Dollar Guild Agent Green Specialist | Certified International Property Specialist 2016 & 2017 Recognition of Excellence Award Winner SDAR
Americans continue to believe that homeownership is important in achieving the American Dream. A recent survey by NeighborWorks America reported that:
“Owning a home remains a core element of the American Dream.” When asked “How important a part of the American dream is owning a home?”
18% of those surveyed said it was the most important part 53% of those surveyed said it was very important 22% of those surveyed said it was somewhat important
Homeownership and Financial Stability The survey also revealed that 81% of Americans believe that owning a home leads to a family being more financially stable. This feeling was reiterated by Zillow Senior Economist Aaron Terrazas who, in a recent press release, explained:
“After about a two-year slowdown, rent growth is starting to pick back up across the nation…Looking into 2018, rent is expected to continue gaining.
More widespread rent growth could mean home buying demands stay high, as renters who can afford it move away from the unpredictability of rising rents toward the relative stability of a monthly mortgage payment instead.” (emphasis added)
Bottom Line Owning a home always has been, and always will be, a crucial part of attaining the American Dream.
David Demangos - Keller Williams Realty Cell: 858.232.8410 | Realtor® BRE# 01905183 www.AwesomeSanDiegoRealEstate.com Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
San Diego Real Estate Expert | Global Property Specialist Certified Luxury Marketing Specialist | CLHMS Million Dollar Guild Agent Green Specialist | Certified International Property Specialist 2016 & 2017 Recognition of Excellence Award Winner SDAR
Multigenerational homes are coming back in a big way! In the 1950s, about 21%, or 32.2 million Americans shared a roof with their grown children or parents. According to an article by Realtor.com, “Nearly 1 in 5 Americans is now living in a multigenerational household – a household with two or more adult generations, or grandparents living with grandchildren – a level that hasn’t been seen in the U.S. since 1950.”
Another report that proves this point is the National Association of Realtors’ (NAR) 2017 Profile of Home Buyers and Sellers which states that 13% of home buyers purchased multigenerational homes last year. The top 3 reasons for purchasing this type of home were: To take care of aging parents (22%, up from 19% last year) Cost savings (17%)
Children over the age of 18 moving back home (16%, up from 14% last year)
Valerie Sheets, Spokesperson for Lennar, points out that,
“Everyone is looking for the perfect home for any number of family situations, such as families who opt to take care of aging parents or grandparents at home, or millennials looking to live with their parents while they attend school or save for a down payment.”
For a long time, nuclear families (a couple and their dependent children) became the accepted norm, but John Graham, co-author of “Together Again: A Creative Guide to Successful Multigenerational Living,” says, “We’re getting back to the way human beings have always lived in – extended families.”
This shift can be attributed to several social changes over the decades. Growing racial and ethnic diversity in the U.S. population helps explain some of the rise in multigenerational living; “Data suggest that multigenerational living is more prevalent among Asian (28%), Hispanic (25%), and African-American (25%) families, while U.S. whites have fewer multigenerational homes (15%).”
Additionally, women are a bit more likely to live in multigenerational conditions than are their male counterparts (12% vs. 10%, respectively). Last but not least, basic economics.
Valerie Sheets brings to light the fact that home prices have been skyrocketing in recent years. She says that, “As home prices increase, more families tend to opt for living together.”
Bottom Line
Multigenerational households are making a comeback. While it is a shift from the more common nuclear home, these households might be the answer that many families are looking for as home prices continue to rise in response to a lack of housing inventory.
David Demangos - Keller Williams Realty Cell: 858.232.8410 | Realtor® BRE# 01905183 www.AwesomeSanDiegoRealEstate.com Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
San Diego Real Estate Expert | Global Property Specialist Certified Luxury Marketing Specialist | CLHMS Million Dollar Guild Agent Green Specialist | Certified International Property Specialist 2016 Recognition of Excellence Award Winner SDAR
David and Gina helped us find and close on our new house in Encinitas. They were prompt, responsive, and were there to address our concerns morning or night. David and his team saved us from having to pay for termite tenting and repairs when the seller was unyielding. We are extremely grateful to have found them and recommend them to anyone who needs a realtor on their side.
David Demangos - Keller Williams Realty Cell: 858.232.8410 | Realtor® BRE# 01905183 www.AwesomeSanDiegoRealEstate.com Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!
San Diego Real Estate Expert | Global Property Specialist Certified Luxury Marketing Specialist | CLHMS Million Dollar Guild Agent Green Specialist | Certified International Property Specialist 2016 Recognition of Excellence Award Winner SDAR
