What's important to millennial homebuyers?
A new wave of homebuyers is set to wash over the housing market and with it comes new sentiment about what’s important in a home and how the buying process should go.
Mortgage rates are low, housing inventory is high and the cost of rentals is soaring – the perfect storm has come together and people in their twenties and early thirties are primed to leave a significant imprint on the home buying process. These days, following the crash of the housing market – which happened when many of these prospective buyers were still in high school or college – the traditional key facets of a valuable home, location and worth, aren’t as important as the emergent feeling that long-term stability and value should be a priority. This is an investment, and what it is currently worth or where it is located, though important, don’t mean as much as whether it could still be in the family decades from now, data from the most recent Homeowner Sentiment Survey indicates.
“People want homes for all the right reasons, starting with a place to make memories, build strong futures and make their dreams a reality,” said Nancy Nagy, CEO of Berkshire Hathaway HomeServices KoenigRubloff Realty Group, the firm responsible for the study into homeowner sentiment.
It’s time for millennials to take the plunge into ownership
Certain markets, such as Hartford, Connecticut, offer strong value for millennials, according to research from Zillow. Sure to take advantage of these valuable investments soon, neophyte homebuyers will want to make sure the entire process is simple. In the next one to five years 42 percent of millennials intend to buy a home, more than the 31 percent of Generation X consumers who intent to purchase a house within the next half-decade.
These younger adults have been putting off homeownership until they’ve begun starting a family. At the same time, home builders are set to focus on constructing more affordable homes, the kind millennials were surely flock to as their first foray into ownership.
Making buying a home easy for millennials
Now that the housing inventory is set to lean in favor of younger homebuyers with new families, many millennials will likely focus on the process of purchasing a house, one they expect to be as quick and easy as possible. In fact, as far as buying a home goes, the simplicity of closing the purchase is a high priority for young consumers. Many of the respondents to the Homeowner Sentiment Survey who used an agent when purchasing their homes indicated that the agent was helpful throughout the process. It is important that the high premium placed on providing assistance to people buying homes remains as millennials prepare to enter the housing market.
A transparent and informative procedure when it comes to closing on a home, or purchasing title insurance, is crucial to prospective homebuyers, especially those who are seeking their first house.
By: Equity National May 14, 2015 Title