Across All Buyers, Millennials Have the Most Purchases

Across All Buyers, Millennials Have the Most Purchases

RECBL - Real Estate News

In housing, generations intersect regularly. Who’s downsizing? Who’s driving the market? Who’s trading up?

What generation is impressing on the market most today? Millennials, according to the 2018 Home Buyer and Seller Generational Trends study, recently released by the National Association of REALTORS(R) (NAR). Millennials are accounting for 36 percent of purchases, ahead of baby boomers at 32 percent, Generation Xers at 26 percent, and the Silent Generation at 6 percent.

"REALTORS(R) throughout the country have noticed both the notable upturn in buyer interest from young adults over the past year, as well as mounting frustration once they begin actively searching for a home to buy," says Lawrence Yun, chief economist at NAR, of the study. "Prices keep rising for the limited number of listings on the market they can afford, which is creating stark competition, speedy price growth and the need to save more in order to buy. These challenging market conditions have caused-and will continue to cause-many aspiring millennial buyers to continue renting unless more Gen Xers decide to sell, and entry-level home construction picks up significantly."

Millennials are buying homes with higher values, but the same square footage: $220,000 for 1,800 square feet, versus last year’s $205,000 for the same size, reveals the study. They are close to family and friends, as well, and prefer to reside near them-an attribute in common with other generations.

"The sense of community and wanting friends and family nearby is a major factor for many homebuyers of all ages," Yun says. "Similar to Gen X buyers who have their parents living at home, millennial buyers with kids may seek the convenience of having family nearby to help raise their family."

Additionally, 52 percent of the millennials in the study have at least one child-an indicator of the likelihood of a move-and another 52 percent purchased in the suburbs. Eighty-five percent purchased a single-family; just 2 percent went with a condominium.

"While there is an overall trend among households young and old to migrate towards urban areas, the very low production of new condos means there are few affordable options for buyers, especially millennials," says Yun.

All generations enlisted a real estate professional for their transaction, according to the study. Ninety percent of millennials are most likely to purchase through a REALTOR(R), with 75 percent believing they can educate them about the process. Ninety percent of millennials are most likely to list with a REALTOR(R), as well, and at least 84 percent of every other generation partnered with a REALTOR(R).

"Especially in today’s fast-moving housing market, consumers of all ages want a REALTOR(R) to guide them through the exhilarating, yet nerve-wracking experience of buying or selling a home," says NAR President Elizabeth Mendenhall.

For more information, please visit www.nar.realtor.​



Jason Grace is AZ Social Realty's content editor. Email him your real estate news ideas at jason@cashbuyerslists.com.




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5 Great Cities for Millennial Homebuyers

5 Great Cities for Millennial Homebuyers

RECBL - Real Estate News

(TNS)-For millennials who are ready to become homeowners, finding an affordable house in a great community can be challenging. With housing inventory historically low, real estate in major metro areas is at a premium. It’s no surprise, then, that young buyers are moving to the suburbs, according to the 2017 Home Buyer and Seller Generational Trends Report by the National Association of REALTORS(R).

Among millennials surveyed, 57 percent bought a house in the suburbs, spending an average of $205,000. Meanwhile, only 12 percent bought in an urban or central city. Affordability, convenience to work and neighborhood quality were among the top requirements for these buyers.

Using this information, we identified five cities that offer some combination of affordable housing, economic growth, job opportunities, proximity to major metro areas and recreational activities.

Great cities for millennial homebuyers:

• Lancaster, Pa.
• Columbus, Ohio
• Garner, N.C.
• St. Petersburg, Fla.
• West Des Moines, Iowa.

Lancaster, Pa.
Population: 59,218
Median value of housing: $109,300

One of the oldest inland cities in the country, Lancaster boasts unique features, such as the countrys oldest continuously running farmers market. It’s also home to an established arts community and a network of independently owned businesses.

There are a number of homes available in Lancaster, including new construction. There were 200 new housing units built in Lancaster in 2017. This year, the city is on track to add 125 more, according to Marshall Snively, president of Lancaster City Alliance.

"In the last 10 years, weve had more than $1.5 billion in public and private investment, including residential development, and more is on the table," Snively says.

Nestled between Harrisburg and Philadelphia, Lancaster is a good option for people who want to work in one of these larger cities but own in a more affordable location. Residents can take a train to Harrisburg in less than 35 minutes, and trains into New York City take about two-and-a-half hours.

Local businesses abound, so many residents don’t have to look beyond the city for jobs. Medical center Lancaster General Health has a network of 300 physicians and more than 3,600 employees. Fulton Bank, one of the region’s most prominent financial institutions, is headquartered in Lancaster.

The city has a strong arts culture, which supports a variety of vintage and antique stores, as well as outdoor markets and performing arts. Gallery Row downtown consists of three blocks of galleries, restaurants and retail.

Columbus, Ohio
Population: 860,090
Median value of housing: $131,800

You can own a home in Columbus without breaking the bank. Even in some of the more expensive neighborhoods, like Harrison West, you can find three-bedroom, two-bath homes for under $250,000.

Columbus supports many industries, including healthcare, education, finance, manufacturing, retail and technology. Columbus largest employer, the Ohio State University, has more than 30,000 full-time workers. Nationwide Insurance is also headquartered here, with about 13,000 full-time employees.

Columbus offers amenities for just about everyone. Kayakers can enjoy Columbus waterways, like Big Darby Creek, Griggs Reservoir and the Scioto River. There are also miles of bike trails and thousands of acres of parkland to hike.

Nightlife includes comedy clubs and live music venues, as well as hundreds of restaurants. Additionally, there are many large-scale attractions, like the Center of Science and Industry as well as the Columbus Zoo and Aquarium.

Garner, N.C.
Population: 28,776
Median value of housing: $164,800

This small town is about six miles south of Raleigh and is also near the Research Triangle, which includes Duke University, North Carolina State University and the University of North Carolina at Chapel Hill.

For people who work in any of these areas, Garner offers more affordable housing than some of the other nearby communities.

Garners business landscape is a mixture of information, utilities, retail and public administration. Companies like Butterball and Direct Distributors are headquartered in Garner. The median household income in Garner is $59,812, above the national median of $57,617, according to Census data.

Outdoor enthusiasts will appreciate Garners 1,200 acres of parkland and open space. White Deer Park offers bikers, runners and walkers two miles of paved trails, playgrounds, an arboretum and a 2,500-square-foot nature center.

Garner also has a mix of chain stores, shopping plazas and locally owned businesses. Local watering holes, like The Beerded Lady, offer a place for residents to see live music.

St. Petersburg, Fla.
Population: 260,999
Median value of housing: $154,800

St. Petersburg has rejuvenated its downtown, which is home to a mixture of business offices, residential property, restaurants and entertainment.

The Gulf Coast city boasts more than a dozen companies that employ over 1,000 people, including HSN, Raymond James Financial and Jabil Circuit, in addition to many other mid- and small-sized companies.

Mayor Rick Kriseman, who was just recently awarded the 2018 Small Business Advocate award by the U.S. Conference of Mayors for his commitment to small businesses, said that creating opportunities for young people is a top priority for St. Petersburg. The city’s Grow Smarter initiative developed by the city and the Chamber of Commerce to assess, develop and create programs to grow the local economy is an example of that focus.

"We are working hard to ensure we are an inclusive and welcoming city where people of all ages can grow and thrive," Kriseman says. "We are specifically aiming to bolster and support our population of young professionals, as their skills and interest align well with our Grow Smarter economic development strategy."

St. Petersburg is home to world-class museums, such as the Salvador Dali Museum and the Fine Arts Museum, as well as chefs honored with James Beard awards, including Lauren Macellaro of The Reading Room.

The city hosts events like the Firestone Grand Prix and is home to the Tampa Bay Rays baseball team.

West Des Moines, Iowa
Population: 64,560
Median value of housing: $195,500

West Des Moines borders Des Moines to the west, about eight miles from Des Moines International Airport. This small city reaps the benefits of the booming financial and publishing industries in Des Moines while retaining a grass-roots community.

"What we’re seeing is that a lot of young people are buying in our older neighborhoods," says Clyde Evans, director of Economic Development for West Des Moines. "They’re fixing up houses from the 60s, 70s and 80s. Its affordable for them to do that here."

Finance and insurance companies, including Wells Fargo, Farm Bureau and Athene, are located in West Des Moines. Small businesses also make up a large part of West Des Moines economy, adding to the 2,800 businesses in the city, according to the West Des Moines Chamber of Commerce. West Des Moines is only 11 miles east of Waukee, the future home of Apples $1.375 billion data center announced last year.

West Des Moines has a variety of restaurants and shopping destinations, including Jordan Creek Town Center and Valley West Mall. There are also microbreweries for beer connoisseurs, like locally owned Twisted Vine.

The 632-acre Raccoon River State Park offers an array of activities like fishing, boating and even swimming along the 500-foot beach, which is part of Blue Heron Lake. There’s also an extensive network of almost 50 miles of greenway trails, park trails and side paths.

(C)2018 Bankrate.com
Distributed by Tribune Content Agency, LLC





Jason Grace is AZ Social Realty's content editor. Email him your real estate news ideas at jason@cashbuyerslists.com.







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Inside the Mindset of Gen X Buyers

Inside the Mindset of Gen X Buyers

RECBL - Real Estate News

Not to be overshadowed by the recent focus on millennial and boomer homebuyers, Generation Xers are making something of a buying comeback in today’s real estate market. Here’s why this trend is significant.

Members of Generation X (ages 37-51) have been somewhat sidelined when it comes to coverage of the social and financial impacts of the different generations. But recent studies are finding that those who came of age in the 80s and 90s represent a higher percentage of new homebuyers than in years past and are gaining a noted foothold in the real estate market.

Coming of age in the real estate market
According to industry sources, millennials are the generation buying the largest share of property at 35 percent.

Following right behind, however, are members of Gen X, accounting for 28 percent of home purchases-up from 26 percent last year.

Forbes reports that the increase in home purchases by Generation X is especially significant in that this sector has the highest average amount of student debt among the generations-$30,000-compared to an average balance of $25,000 for millennials. Industry sources also report student loans are a contributing factor as to why Gen Xers delay buying a home longer than their millennial counterparts.

What are they looking for?
According to industry sources, the following factors might influence the real estate comeback among Gen Xers. These factors may also help determine the kinds of homes these buyers are looking for.

Members of Gen X are typically:

• In their peak earning years
• The generation making the most money, with a median annual income of $106,600
• More likely to have families
• The largest generation with kids still living at home

While they may have taken longer to purchase homes, the generation in between the famed boomers and millennials is on its way to a real estate comeback. With more income and more children living at home, Generation X may be looking for bigger homes at a higher price point to accommodate their family and lifestyle needs.

Although millennials and boomers continue to generate coverage as buyers and sellers in the real estate market, the middle generation, Gen X, is coming into its own and is at its peak as more members join the ranks of American homeowners.

Source: HSA Home Warranty

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Effective Ways to Communicate With Each Generation of Homebuyers

Effective Ways to Communicate With Each Generation of Homebuyers

RECBL - Real Estate News

It isn’t all about phone calls anymore-and we promise: knocking on strangers doors isn’t the status quo, either. Your clients prefer to be communicated in a variety of different ways, often depending on the generational attributes that distinguish us all.

It’s hard to bridge the gap between baby boomers and millennials. The time has come where the real estate industry has begun to embrace the new and largest generation of homebuyers.

Because of this, we thought we’d create a quick cheat sheet so you can better connect with your ever-growing and evolving sphere.

Traditionalist - Born Before 1945
Traditionalists, or Maturists, are now well past the normal retirement age. They shy away from technology and put a high importance on safety, security, and capital preservation. Why? They grew up in the shadow of troubling times, namely the Great Depression and World War II. Communicate with them through print and face-to-face.

Baby Boomers - 1946-1960
Generally, since this gen adapted to online communication technology later in their lives, baby boomers prefer to talk face-to-face or on the phone. They were influenced by rock music and the Cold War, and all of them probably remember exactly where they were when Neil Armstrong took his first step on the moon. The best thing you could do is pick up the phone and call them.

Gen X - 1961-1980
This gen is a bit more technologically advanced and receptive to new innovations than the baby boomers are. They’re sandwiched between two much larger generations and often are raising kids while taking care of their now elderly parents. They embrace new communication channels like email and Facebook; in fact, emailing is favored and the easiest way to get in touch with them without interrupting their day.

Millennials - 1981-1995
At 75.4 million, millennials are now the largest generation yet, which means the largest generation of homebuyers. This crew grew up with technology at their fingertips. In their childhood, they saw cell phones surface, and in their young adulthood were using laptops and tablets every single day. Online communication became a thing in all aspects of their lives: family and friends, romantic relationships and work. They’ve not only been heavy users of social media; they created it. They prefer real-time conversations on platforms like WhatsApp, Instagram, Snapchat, Skype, or simply iMessage, which is why they expect answers to questions almost instantly. If they don’t pick up when you call, try sending them a text. Chances are they won’t listen to the voicemail you left anyways.

This might all seem overwhelming or annoying (or both), but creating clear lines of when to use which communication styles for your sphere will mean more bang for your buck (and time). After all, there’s a fine line between helpful and bothersome. You don’t want to rub people the wrong way. A set of communication guidelines will help you settle into the role as a clients trusted advisor quicker than ever before.

For more information, please visit www.moxiworks.com.

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Millennial Homebuyers? Biggest generation in U.S. History

Millennial Homebuyers? Biggest generation in U.S. History

RECBL - Real Estate News

Millennials are the biggest generation in U.S. history, even surpassing baby boomers in numbers. Already, they make up 34 percent of all homebuyers-and as they get older, make more money and start families, that figure will grow. In fact, Census Bureau data projects household formation will average about 1.5 million per year through 2020. To attract millennial homebuyers to do business with you, it’s important to understand three things: how millennials look for homes, what they want in their homes, and what they want to see on real estate websites.

How Do Millennials Find Homes?
The millennial home search begins online. According to the National Association of REALTORS(R) (NAR), some 93 percent of millennial homebuyers "frequently" use the internet when searching for homes. More than half of millennial homebuyers find the home they ultimately purchase online. NAR also reports:

• 99 percent of millennial homebuyers use online websites to look for homes;

• 86 percent of millennial homebuyers use a mobile website or app in their search process; and

• 58 percent of millennial homebuyers find their home through mobile search.

In short, get the attention of millennial homebuyers with an appealing website that’s equally attractive on desktop and mobile devices.

What Do Millennials Want in a Home?
Millennials want different things than their parents or older siblings want from a home. Here’s what a recent survey found:

Technology: New appliances are the single most important feature millennials look for in a home, cited by 75 percent of respondents. Almost half (47 percent) want solar panels or other energy-storage features, while 38 percent want smart home systems.

Space: Millennials don’t need the biggest lot on the block (less than one-fourth want one acre-plus properties); however, they do like plenty of space inside the home. Sixty-two percent want a big master bedroom, 54 percent want a two-car garage, and 41 percent want a finished basement.

Luxury: Luxury outdoor upgrades such as outdoor Jacuzzis or three-car garages aren’t high on millennials priority lists; however, almost half want a luxury kitchen and hardwood or stone flooring.

It’s important to include all details in your listings, but focus first on those that matter most to millennials. Highlighting key features in your listings and using them as keywords on your website will boost your SEO.

What Do Millennials Want to See on Real Estate Websites?
Driving millennial homebuyers to your real estate website is only the first step. You’ve also got to make sure your website contains the content they look for when searching for a home. A whopping 91 percent of millennials surveyed by NAR say photos are the most important feature on a real estate website. Accordingly, make sure your website has plenty of appealing photos of available homes from all possible angles (the more, the better).

Almost as important as photos is detailed property information, cited by 88 percent of millennials. Accordingly, your real estate website must be regularly updated with property data. Once a day is OK, once an hour is better-but having this content update in real-time is ideal.

Finally, neighborhood information is important to nearly half of millennial homebuyers. Creating landing pages for every city, county and neighborhood in your MLS can address this need, as long as the landing pages are filled with market statistics, images of the local area, and local school information. Again-having this content automatically update is key to prospect engagement.

Home, Sweet Home
Taking the time to understand what millennial homebuyers want from a home and how they search for homes can pay off big in attracting millennial home buying prospects, but how can you capitalize on this information? TORCHx is a great option-their best-in-class websites are designed to attract this group through mobile and SEO-optimized property pages that automatically update with content millennials look for.

​Jesse Friedman co-founded TORCHx in 2013 and has built the premium digital marketing platform into a leading solution for real estate brokers and agents. Friedman is a serial entrepreneur with a strong history in real estate marketing and advertising.

To learn more about TORCHx, please visit torchx.com or request a free demo of the platform.

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How to Attract Millennial Homebuyers

How to Attract Millennial Homebuyers

RECBL - Real Estate News

Millennials are getting the brunt of the blame for killing many industries that were supported by previous generations but, as it turns out, the real estate industry is alive and well.

Understanding what millennials are looking for in a potential home is imperative if you want to succeed as a real estate professional, as more millennials are starting to search for their first home. Taking certain actions can give you an edge in attracting the millennial market.

Highlight the Flexibility of Open Spaces
If millennials are one thing, its indecisive. They’ve grown up with the idea that they can go anywhere and do anything. The trouble is that they want it all and can be fickle about where to settle. They may enter the home-buying market several times before they seal the deal. What if there’s a career change? Are kids in the future or not? Maybe the contract job (and the regular income) will dry up. To close the deal with a millennial buyer, you have to show off, for example, how the spare room can be used either as an office or as a nursery. It can even be used to generate income by renting it out on space-sharing apps or to a regular renter.

Sell the Potential of Genuine Fixer-Uppers
Saddled with debt and settled in lower-paying jobs, most millennials can’t afford much more than a small, basic house. They understand that there is a potential value in a bigger home in questionable condition, though. Armed with confidence and education (and home-flipping reruns on TV), they are often open to investing in fixer-uppers. In a market where another agent is a text message away from a skeptical millennial, don’t lose the trust of a potential buyer by trying to sell a lemon.

Balance Eco-Friendly Features With Home Automation
If you want to catch the attention of the growing millennial market, showcase how eco-friendly and smart the property is (or can be)! Be sure that a high-speed internet connection is available; if not, research an alternative. Exchange appliances that are not energy-efficient for ones with smart features. Being green is just as important, so consider advising the seller to invest in solar panels. Also, be ready to show off the outdoor living and gardening space.

Voice-recognized smart home devices from major tech companies are taking over home features. Demonstrate ways that the home can be fully automated with the right products and efforts. Consider featuring safety devices like security cameras or doorbell cameras that are tied into a smartphone app. Smart thermostats are becoming the norm as well, even in rented spaces.

Focus on the Convenience of the Location
The character of the home and neighborhood matters to millennials, so point them to quaint communities, local small businesses, and art districts. They tend to work outside of the formerly typical nine-to-five, so routine meals go by the wayside. Proximity to restaurants and delivery options is important. Also, many millennials enjoy non-motor transportation, as well, so distance from work hubs matters.

Since they also need to be able to afford it, a home in the suburbs may be necessary. If a home is located where a commute would be a necessity, be ready to provide travel times, fastest routes, and multitasking ideas like listening to podcasts or staying current on the latest news on NPR.

Assure the Simplicity of It All
Millennials pride themselves in not wanting to "adult." Growing up, they weren’t involved in home projects outside of routine chores and many are often not concerned with home skills that were once considered common. Draw millennials in with properties that come with amenities such as lawn maintenance or consolidated billing, but do avoid demanding homeowners associations. Update exterior features that require regular maintenance (a shingle roof to a metal roof, for example).

Prepare your buyers with the knowledge that will give them the confidence to close. Have a website or print-out of information that will let them know what to expect in terms of processes and costs of services related to purchasing a home. Millennials will close much more readily when they understand the system.

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7 Millennial First Home Essentials

7 Millennial First Home Essentials

RECBL - Real Estate News

More and more millennials are buying homes, representing around 45 percent of all purchase loans, and most first-time millennial homebuyers are on a limited budget.

While you may not be able to find the perfect home that checks every box on your dream home list, you can find a home you can improve on or add to over time.

As you hunt for your first home and make the big purchasing decision, make sure your checklist of new home essentials includes the following seven musts.

1. Energy-Efficient Features
Not only is energy efficiency trendy, but it also saves you money on your power bill and reduces your carbon footprint. When viewing homes on the market, look for energy-efficient features like double-paned windows, solar panels, attic insulation, LED lighting, and ENERGY STAR appliances. When you move in to your new domicile, invest in the Nest Learning Thermostat, which helps save you money on your energy bill and allows you to control your houses temperature from your phone.

2. An Entertainment Center
Moving from an apartment to a home means more room, so celebrate with an entertainment space. Equip a portion of your living room with a comfy couch, a big screen TV, and a stereo system. Don't forget a TV package and a streaming stick to access your favorite channels, such as HBO and Starz, and streaming services, including Netflix and Hulu. Trust us-your friends will thank you, and your home will be everyone’s favorite hangout.

3. Smoke Alarms and Carbon Monoxide Detectors
A smoke alarm and carbon monoxide detector should be on every level of a house, especially near bedrooms. While walking through homes, check to see if a property has up-to-date smoke alarms and carbon monoxide detectors. You may want to install smart versions, like the Nest Protect, a smoke and carbon monoxide alarm. The system checks its batteries and performs silent tests on a regular basis so you don’t have to.

4. A Home Security System
Burglary rates have been steadily increasing over time, but installing a security system can help you feel safer and protect your new home. If you buy a house that doesn’t have a home security system, you can easily install the necessary equipment with options such as the Scout Home Security System. You can connect a door panel, access sensor, motion sensor, video camera and more, depending on your needs.

5. A Home Improvement Magazine Subscription
Whether you like it or not, owning a home comes with a lot more responsibility than renting. You’ll occasionally spend weekends and afternoon’s fixing something or working on a home project. Even though just about every project type is available on the internet, subscribing to a home improvement magazine, like Better Homes & Gardens, serves as a homeowners initiation to all house-centric projects. Along with tips for home maintenance, you can also find inspiration for your next project in the leaves of these handy prints.

6. Wallpaper
No, were not back in the 1960s. Wallpaper is back and trendier than ever. If you find a home with wallpaper, don’t leave screaming. Depending on the style, you may be able to make it look modern, or, if a room is boring and you aren’t sure how to spruce it up without breaking the bank, try a modern wallpaper trend, such as a marble pattern. If you aren’t sold on the idea, try temporary wallpapers that are easy to remove.

7. Plants
Greenery is one of the biggest home decor trends, so bring the outdoors inside with houseplants. Not only do they clean the air, but they’re also inexpensive ways to decorate a room and brighten up even the darkest of spaces. For a small room, decorate with a tall cactus or fiddle leaf fig tree to make the area look bigger. Don’t have a green thumb? Try a faux plant, which only requires occasional dusting.

These must-haves are just a few to add to your checklist for an ideal dwelling. Think we missed something? Share what other essentials you think should be on every millennials new home list.

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Time to Close for Millennials Swings From State to State

Time to Close for Millennials Swings From State to State

RECBL - Real Estate News

The average time it took millennial mortgage borrowers to close a loan was 44 days in July, but swung from state to state, according to Ellie Mae(R)’s recently released Millennial Tracker, a measure of millennial mortgage applications. Closing a purchase loan took 42 days, while closing a refinance loan took 46 days. The amount of time it takes to close, varied by state.

Borrowers in California are looking at a 37-day window and borrowers in New York are looking at a 60-day window.

"Between the competitive housing market with limited inventory and the 30-year note rate at a 2017 low, some millennial homeowners may be deciding to stay put and take advantage of the opportunity to refinance," said Joe Tyrrell, executive vice president of Corporate Strategy for Ellie Mae, in a statement. "With many more millennials interested in becoming homeowners for the first time, however, the purchase market is still very strong."

The average time it took for millennial borrowers to close an FHA loan-one of the more popular types of loans for millennials-was 44 days, up by one day from June, according to the Tracker. The average time it took to close a VA loan was 50 days, up by five days from June.

Millennial borrowers’ average FICO score rose in July, to 724 from 723 in June.

Source: Ellie Mae

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The Yin and Yang of the Millennial Market

The Yin and Yang of the Millennial Market

In a recent release from apartmentlist.com, it’s very interesting to learn while millennials are starting to buy homes, there are not enough homes in their price range on the market - and even if there were, many could not come up with a down payment.

In his latest Apartmentlist Rentonomics report, Andrew Woo writes that during the Great Recession, investors bought countless foreclosed properties, most of which were starter homes.

And rather than selling when prices recovered, investors turned them into profitable single-family rentals. And as a result, Woo says there are very few existing starter homes on the market.

Woo points to Megan McGrath of MKM Partners, who says the housing recovery was primarily at the middle end of the market which drove up home prices and land prices followed. With higher land prices, it is harder for home builders to make a good profit at lower home prices.

During the housing recovery, the price spread between new and existing homes increased because builders were focused on the move-up buyer. But Woo says now middle-end sales are starting to slow down, and builders need to target new buyers to sustain growth.

He says big builders are starting to introduce new product lines at lower price points, and these starter homes are selling well. But the only way for builders to lower prices and take a hit to their margins is if they see big growth in new orders, and he is not seeing that happening anytime soon.

Woo says the demand is clearly growing but is not as strong as demographics would suggest. Single-family construction still stands at 18% below its 25-year average, and he warns about a developing affordability gap.

Aparetmentlist.com recently surveyed 24,000 millennial renters and found that 80 percent want to purchase a home, but face a huge obstacle in affording one. Woo says its because millennials vastly underestimate the savings needed for a down payment.

Woo fears based on current saving rates most millennials will need at least a decade to save enough - and that a lack of savings, combined with the shortage of affordable starter homes, will leave a large share of millennials renting for years to come.





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Millennials drive housing confidence higher, despite red-hot prices

Millennials drive housing confidence higher

Millennials drive housing confidence higher, despite red-hot prices
#realestate #cashbuyerslists #millennials #confidence #home #buyers #sellers #housingmarket #housing #income #hot #spring #time 

Both buyers and sellers alike are feeling very good about the housing market this spring, even as home values hit new highs and mortgage rates move up. "Millennials showed especially strong increases in job confidence and income gains, a necessary precursor for increased housing demand from first-time homebuyers,"
Read More> http://bit.ly/RECBL-March7



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MILLENNIAL HOMEBUYERS CONTINUE TO MIGRATE INLAND

Millennial First Time Home Buyers

Cash Buyers Lists News

Millennials continue to make their way inland in search of affordable housing, with Minneapolis, Minn. experiencing the most millennial home-buying activity this fall, according to October data from Ellie Maes Millennial Tracker, a measure of millennial mortgage applications. Based on the data, Philadelphia, Pa., St. Louis, Mo., Chicago, Ill., and Detroit, Mich., comprised the top five cities for millennial homebuyers in October.

"As housing prices continue to rebound, millennials are increasingly representing a higher percentage of homeowners in the middle of the country," said Joe Tyrrell, executive vice president of Corporate Strategy at Ellie Mae, in a statement.

Millennial borrowers FICO credit scores, on average, were 722, according to the data. The Midwest has shown marked improvement in credit overall, more so than any other region in the country.  Millennial homebuyers, especially in the Midwest, are also affording more than they were just six months ago, with the average appraised value up from $212,939 in June to $223,153 in October.  Profiling millennial homebuyers, the Tracker shows approximately half of millennial borrowers, with an average age of 28.7, were single and half were married-a near-even split that underscores the growing trend toward single homeownership. 

Millennial men, however, were more likely than millennial women to be the primary borrower.
More than three-quarters of closed loans for millennials were purchases, while 22 percent were refinances, according to the data. The average loan amount was $184,733.

California and Florida experienced the least millennial home-buying activity this fall, with the Miami, Los Angeles, San Francisco, San Diego and Tampa-St. Petersburg metropolitan areas comprising the top five on the other end of the spectrum.
Source: Ellie Mae

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STUDENT DEBT AND AFFORDABILITY CREATE RIFT BETWEEN HOMEOWNERS AND RENTERS

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​​​​​​​​​​Despite lackluster economic growth and stark home-price appreciation in several parts of the country in recent months, roughly three-quarters of surveyed households still believe now is a good time to buy a home, but there's a considerable gap in morale between homeowners and renters, according to the latest installment of the National Association of REALTORS(R) Housing Opportunities and Market Experience (HOME) survey. The survey also found that roughly half of young adults with student debt are uncomfortable about taking on a mortgage.

In NAR's second quarter HOME consumer survey, respondents were asked about their confidence in the U.S. economy and various questions about their housing expectations, including questions on if carrying student debt is tempering their ability and appetite to take on mortgage debt.

Through the first half of the year, NAR's survey found that the share of homeowners and renters who believe now is a good time to buy a home is mostly holding steady, with 80 percent of homeowners (82 percent in March) and 62 percent of renters (unchanged from last quarter) saying it's a good time to buy. However, the share of renters who think so is down from 68 percent in December 2015, and those under 35 were the least confident that now is a good time to buy.

Lawrence Yun, NAR chief economist, says the survey brings to focus the ongoing disparity in buyer confidence between current homeowners and renters. "Existing-home prices surpassed their all-time peak this spring and have climbed on average over 5 percent nationally through the first five months of the year and even faster in areas with severe supply shortages," he said. "Most homeowners appear to realize that if they're ready to sell, they'll likely find a buyer rather quickly and be able to use the sizeable equity they've accumulated in recent years towards their next home purchase. Meanwhile, renters interested in buying continue to face minimal choices, strong competition and home prices growing faster than their incomes."

Adds Yun, "Given these affordability pressures, it's no surprise respondents earning over $100,000 and those living in the Midwest - the most affordable region of the country - are the most optimistic about buying right now."

This quarter's HOME survey also revealed that carrying student debt is causing many to be uneasy about taking on additional debt. According to the survey, roughly two-thirds of non-homeowners and half of respondents under 35 with student debt said they aren't comfortable also having a mortgage. Furthermore, of those with student debt, non-homeowners and younger adults were less likely to believe they'd be able to qualify for a mortgage if they applied.

"It's becoming very evident from this survey and our research released last month that the financial and emotional impact of repaying student debt is contributing to a delay in purchasing a home for many would-be buyers," adds Yun. "At a time of quickly rising rents, mortgage rates at all-time lows and increasing housing wealth, a lot of young adults in their prime buying years are struggling to enter the market and are ultimately missing out on the stability and wealth accumulation that owning a home can provide."

Mostly unchanged attitudes about direction of U.S. economy, personal financial outlook
A tick under half of all households in the survey believe the economy is improving (49 percent), which is mostly unchanged since the inaugural HOME survey in December 2015. Renters, respondents living in urban areas, and those in the West were the most optimistic. On the other hand, nearly two-thirds of those living in rural areas don't believe the economy is improving.

Reflecting somewhat lessening confidence that respondents' financial situation will be better in six months, the HOME survey's monthly Personal Financial Outlook Index of all households slightly decreased (to 57.7 in June) since March (58.1), but is unchanged from June 2015.

Expanding belief that now is a good time to sell
With strong price growth prevalent in most of the country and homes selling at a quickened pace, more current homeowners (61 percent) believe it is a good time to sell compared to the first quarter of this year (56 percent). Respondents in the West were once again the most likely to think now is a good time to sell, while also being the least likely to think now is a good time to buy.

"More homeowners acknowledging this pent-up demand may perhaps mean we begin to see more supply come online in the near future," adds Yun. 

When asked about their outlook for home prices in their community in the next six months, almost all believe that prices will stay the same or rise (93 percent), which is consistent with last quarter (91 percent). Respondents from the West, those living in urban areas and renters are most likely to believe prices will go up in their communities.

For more information, visit www.realtor.org.

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SURVEY: SAVING A TOP PRIORITY FOR MILLENNIALS, BUT IMPULSE SPENDING A MAJOR BARRIER

One in three millennials (34 percent) ranked saving as their No. 1 goal for the year - ahead of living a healthy lifestyle (20 percent), paying off debt (19 percent), and losing weight (14 percent). But while saving was a top priority, a majority of millennials attributed their lack of saving to impulse buying (65 percent).

According to a recent survey from the American Institute of Certified Public Accountants (AICPA) and the Ad Council, for older millennials - those born between the early 1980s and early 1990s - saving is crucial as they work toward major milestones in their lives. When asked what they were saving money toward, respondents sought to secure their future by saving for an emergency fund (40 percent), saving for retirement (22 percent) or starting a family (15 percent). They also reported saving for larger purchases like a vacation (36 percent), a new house (27 percent), a car (26 percent), home improvements (20 percent), or a wedding (8 percent).

To provide Americans aged 25 to 34 with the tips and tools to take control of their personal finances, AICPA and the Ad Council's national advertising campaign, Feed the Pig, is continuing to collaborate with new partners to deliver this critical content in a relevant and engaging way.

"Many young adults think saving is impossible," says Gregory Anton, CPA, CGMA, chair of the AICPA's National CPA Financial Literacy Commission. "While low salaries and high debt levels can certainly be barriers to saving, the key is to create a budget and stick to it. Establishing a disciplined saving strategy early in life and avoiding missteps will reap substantial long-term dividends."

In addition to impulse buying and lack of budgeting, an overwhelming majority of young adults say that their current salary (84 percent), having too many bills (81 percent), paying down debt (79 percent) and not establishing a personal budget (62 percent) are impediments to saving more. Regardless of the reason, almost half (44 percent) of those surveyed did not pay their full credit card balance each month or borrowed money from friends or family. Forty-one percent had less than $100 in their checking account, 30 percent paid a late or overdraft fee, and 23 percent missed a bill payment.

Over half (55 percent) of the young adults surveyed admitted that they were impulse shoppers, defined as making an unplanned purchase of $30 or more on a daily or weekly basis. Impulse buyers are more likely than those who never or rarely make an impulse purchase to have carried a balance on their credit card (45 percent vs. 35 percent) and have paid a late or overdraft fee (31 percent vs. 21 percent).

The Internet is viewed as a positive by millennials as an overwhelming majority (92 percent) agree that it has made it easier to get the best deal and 88 percent agree that they comparison shop for the lowest price before making a purchase. However, approximately one in four (28 percent) have seen a big ticket item they purchased for a lower price than they paid in the past year - underscoring the importance of being diligent when shopping for big ticket purchases.

"The good news is that millennials are internalizing the message that saving is important, but they still need help creating habits that stick," says Ad Council President and CEO Lisa Sherman. "We're excited to collaborate with partners like Facebook and Games for Change to create new tools and content that will help make saving easier and more accessible for millennials."

The Feed the Pig website offers a range of interactive tools, including calculators, podcasts and free subscriptions to weekly saving tips via email and text message to help foster positive saving habits.

To date, the Feed the Pig campaign has received more than $382 million in donated media through the Ad Council's model. The CPA profession launched a unified financial literacy initiative, 360 Degrees of Financial Literacy, 12 years ago. The effort brought together the AICPA, state CPA societies, and individual CPAs to address financial illiteracy.

Source: AICPA; The Ad Council

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