The Re-entrance of Millennials Buying Real Estate

The housing market continued to stabilize, even as 2014 rounded out and as leases came due for the next year’s renewal, Zillow predicted that the under-35 set will be running the real estate buying show this year.

Dr. Stan Humphries, Zillow Chief Economist, explained: “Roughly 42 percent of Millennials say they want to buy a home in the next one to five years, compared to just 31 percent of Generation X, and by the end of 2015 Millennials will become the largest home-buying age group. The lack of home-buying activity from Millennials thus far is decidedly not because this generation isn’t interested in homeownership, but instead because younger Americans have been delaying getting married and having children, two key drivers in the decision to buy that first home. As this generation matures, they will become a home-buying force to be reckoned with.”

Realtor.com agrees with this assessment, as their 2015 Housing Forecast shows:

“Households headed by Millennials will see significant growth as a reflection of economic gains. Millennials will also drive two-thirds of household formations over the next five years. Next year’s addition of 2.75 million jobs and increased household formation will be the two key factors driving first-time buyer sales.”

Looking to Buy a House in 2015?

Whether you are in the under-35 Millennial set or just looking to move in 2015, the stable housing market coupled with the increase in potential home buyers means that home prices will continue to rise. If the predictions come to pass, it will become a seller’s market during the course of the year, as supply and demand converge.

If you are getting your house ready to sell, take some time to meet with your local mortgage banker and get pre-approved. You will need to know the facts about how much house you will qualify for based the projected sales price of your current home. Also, meet with a local real estate agent and get the nitty gritty on your neighborhood for home sales and the region you intend to move.  We can connect you with great agents – contact us today!

Use the winter weather as an excuse to assess if your home could use a little TLC before you put it on the market – focus on the kitchen, bathrooms and conditions of your walls first and foremost. With a little preemptive effort on your part now, you can sell quickly and move on your dream home early in the year before the feeding frenzy begins in earnest.