What’s next for real es­tate market

Daily Local News (West Chester, PA) - - FRONT PAGE - Mau­reen Hughes

What many have pre­dicted seems to be the stage set for 2017 as Mil­len­ni­als are poised to make a gi­ant wave.

Get ready for the Mil­len­nial takeover of the real es­tate market. What many have pre­dicted seems to be the stage set for 2017 as Mil­len­ni­als are poised to make a gi­ant wave in the in­dus­try as first time home­buy­ers. Ac­cord­ing to a sur­vey of buy­ers by real­tor. com, a change in the buy­ing pop­u­la­tions will have a huge ef­fect in the type of homes pur­chased as well as the neigh­bor­hoods that are de­sir­able.

In 2016, a mere 33 per­cent of in­di­vid­u­als look­ing to pur­chase a home were first-time home­buy­ers. But look­ing into 2017, stats are show­ing over 50 per­cent of peo­ple with an eye for the home buy­ing market will be first time time pur­chasers. Even more as­tound­ing, over 60 per­cent of those buy­ers are under the age of 35. 2017 will most likely be the year that the Mil­len­ni­als be­gin their real es­tate takeover and the market will never be the same.

Jonathan Smoke, cheif economist for real­tor.com, has an­a­lysed re­sponses from shop­pers and found a large shift in the works.

“With so many first-time buy­ers in the market, com­pe­ti­tion will be even fiercer next year for af­ford­able starter homes in the sub­urbs. Those look­ing to buy may want to con­sider a win­ter home pur­chase in or­der to avoid bid­ding wars and higher prices spurred by a po­ten­tial in­crease in mil­len­nial buy­ers,” he said.

Real­tor.com states that the mil­len­nial buyer prefers sin­gle fam­ily homes (39 per­cent) or town­homes (34 per­cent) as they look to set­tle down, get mar­ried, and start a fam­ily. Although down pay­ments and find­ing hous­ing within their bud­get will still re­main an is­sues, there is a growing de­sire for mil­len­ni­als

to have more space, both in­doors and out, as well as a more pri­vate life­style. Mil­len­nial buy­ers will want to make sound fi­nan­cial de­ci­sions and will be look­ing for homes in the lower price range with po­ten­tial for in­vest­ment down the line.

The hous­ing short­age will re­main an is­sue in 2017 as mil­len­ni­als and baby boomers alike will be on the hunt for homes in the sub­urbs. Nearly 50 per­cent of all Mil­len­ni­als pre­fer homes in the sub­urbs or out­ly­ing sub­urbs. “The ma­jor­ity of home­own­ing Amer­i­cans live in the sub­urbs, so the pop­u­lar­ity of the sub­urbs isn’t a new phe­nom­e­non,” says Smoke. “But the in­creas­ing

pref­er­ence by mil­len­ni­als rep­re­sents a shift from the more ur­ban lo­ca­tions where many of them have been rent­ing.”

This isn’t to say the ur­ban ar­eas will be de­void of mil­len­ni­als - as ur­ban life re­mains a close sec­ond in their lo­ca­tion pref­er­ence. Adding to the home sub­ur­ban home short­age, baby boomers are also on the look­out for homes near friends and fam­ily, or

even to be closer to grand­chil­dren. Over 70 per­cent of baby boomers will be

on the look­out for sin­gle fam­ily homes.

As we look to 2017, eval­u­ate in­ven­tory needs, watch buyer trends and eye the in­ter­est rates, it is sure to be an epic year. What do you think 2017 holds for the real es­tate market? Do you think Mil­len­ni­als are ready for a hous­ing market takeover?

Mau­reen Hughes is the Lead List­ing Spe­cial­ist of The Wayne Megill Real Es­tate Team of Keller Wil­liams Brandy­wine Val­ley in West Ch­ester. For buyer or seller rep­re­sen­ta­tion, or for more per­spec­tive on the lo­cal and na­tional real es­tate market, please email mau­reen­hughes@kw.com and visit The Wayne Megill Team site at http://www. wayne­megill­team.com.

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