The Waiting Game for Millennials May Be Over
Every day Real Estate News | Friday, June 26, 2015
Millennials are primed to gain market share in the second half of the year as more choose to take the dive into home ownership, as indicated by a shopper survey overview of more than 12,000 respondents directed by realtor.com®.
First-Time Buyers Fuel Latest Sales Boost
Housing on Track for Best Year Since 2006
A year ago, first-time buyer market share decreased as the year progressed and dropped to 27 percent in the late spring, as per information from the National Association of REALTORS®.
"This year, we're seeing an pickup in millennial interest that indicates a stronger first-time purchaser market," says Jonathan Smoke, realtor.com®'s chief economist . "As the economy keeps on growwing throughout the following few years, we can expect first-timers to come back to a sound level of 40 percent of the market sector. An arrival to that level would add roughly 15 percent to the numberr of homes sold.
The National Association of REALTORS® reported not long ago that a surge in first-time home purchasers a month ago helped lift existing-home deals to the highest amount in about six years. The overall market of first-time home purchasers in May rose to 32 percent of existing-homes sold, matching the highest share to September 2012.
First-time purchasers are critical to a healthy housing sector, Smoke says.
"Generally, they're the biggest demographic of home purchasers and can have a sensational effect on housing," Smoke says.
Realtor.com® takes note of that since the start of this current year there has been a slight increase in more seasoned millennials – those between the ages of 25 and 34 years of age – visiting its website and mobile applications for home searches. The share of traffic by older seasoned millennials searching for homes to buy rose to 23 percent, conpared with 21 percent in January. Then, realtor.com® reports that the those searching for investment properties tumbled to 20 percent from 26 percent in January.
Additionally, realtor.com®'s investigation noticed that 65 percent of 25 to 34 year olds reviewed said they plan to buy a home inside of three months, up from 54 percent