What’s next for real estate market

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.