Millennials Have More in Common with Their Parents than You Think When it Comes to Home

Are Millennials Becoming Their Parents?

Yes, when it comes to homeownership.

Equally across the generations, almost all boomers (91% ages 56-74 / born approx. 1946-1964), Gen Xers (91% ages 40-55 / born approx. 1965-1980) and millennials (92% ages 24-39 / born approx. 1981-1996) say that owning their own home is important. When it comes to picking a neighborhood, the generations mostly agree:

· Location, Location, Location: Eight in ten (81%) Americans agree that they value the location of their home over the size, with the majority of all generations in agreement: boomers (79%), Gen Xers (79%), millennials (81%)

· Safety First: Boomers (98%), Gen Xers (98%) and millennials (93%) overwhelmingly agree on the importance of living in a safe neighborhood

· Keep Your Friends Close, and Your Family Closer: Nearly three out of four boomers (72%), Gen Xers (73%) and millennials (73%) say it’s important to them to live close to their families

· I Love the Nightlife, Sometimes: A slight majority (54%) of millennials say living close to bars, restaurants, and nightlife is important; those numbers drop slightly for Gen Xers (46%) and boomers (34%)

· Americans want a Trusted Advisor (a real estate agent) to Guide Them Home: Millennials, Gen Xers and boomers who have worked with a real estate agent to buy or sell a home agree, the number one reason they decided to work with a real estate agent was to have a trusted advisor to help navigate the buying / selling process (58% of boomers, 45% of Gen X, 47% of millennials)

· “Home Where My Music’s Playing, Home Where My Love Lies Waiting:” These lyrics are straight from “Homeward Bound,” and when it comes to what music evokes feelings of being at home, rock and country are the top picks, with 37% of Americans saying each of these genres makes them think of home. When it comes to rock, similar proportions of millennials (36%), Gen X (43%), and boomers (39%) say this type of music elicits feelings of home

If They Were in the Market to Purchase a Home, What Would Make Americans More Likely to Purchase?

· The White Picket Fence: Millennials are nearly twice as likely as boomers to say that they would be more likely to purchase a home if it has a white picket fence (13% vs. 7%)

· Hardwood Floors vs. Carpeting: Boomers are more likely than millennials to say hardwood floors would make them more likely to purchase a home (53% vs. 35%). Carpeting is significantly less popular than hardwood floors among all three generations, with 20% of millennials, 21% of Gen X and 21% of boomers saying that carpeting would make them more likely to purchase a home.

· Americans Love Privacy: The top two features that would make Americans more likely to purchase a home are a master bedroom with a private master bathroom (63%) and a fenced-in backyard (51%)

· DIY vs. Move-In Ready: Eighty percent of Americans say if they were purchasing a home, they would prefer to buy a move-in ready home over one that requires any updating, but what would they give up? Roughly 7 in 10 Millennials (70%) and Gen Xers (71%) say they would be willing to sacrifice home size for a move-in ready home within their budget, boomers agree but at a lower rate (63%)

Thanks to our partners at Real Trends for compiling + sharing this information.

What about you? Whether you’re a millennial, a boomer, a gen-Xer or even a Zoomer…what would make a house the perfect home?

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How Coronavirus is Impacting the Housing Market

As Real Estate professionals, we get a lot of questions.

Right now, most of them are about the impact that COVID-19 will have on the Real Estate market. In an effort to bring you the latest facts, information, and industry forecasts, we will continue to share from trusted sources. Please let us know if there is anything that we can do for you.

From Curbed:

Few homes look their best in the dirty grays of late winter, which is, in part, why homebuying season coincides with the arrival of spring.

This year, however, the crocuses that can make a house look that much nicer are showing up alongside the less reassuring news of a virus circling the globe.

The rapid spread of COVID-19—more commonly referred to as coronavirus or novel coronavirus—has officially been declared a pandemic by the World Health Organization. It’s already claimed more than 4,000 lives. Major events and conferences are being postponed or canceled, corporations are telling employees to work from home, and the stock market has dropped more than 15 percent since February 24.I

f you’re in the market for a house, all this uncertainty might have you worried about the housing market. Will it suffer a swoon similar to Wall Street? There are a few ways the virus could effect the housing market that you should be aware of—but before we get into the details, you can breath a sigh of relief, because a housing catastrophe on the scale of the 2008 financial crisis is almost certainly not going to happen.There are more than 1,000 cases currently confirmed in the United States. 

The countries where the virus has hit the hardest—namely China, where more than 80,000 cases have been documented—are global manufacturing hubs that corporations use as suppliers. China’s economy has been brought to a standstill as a result of the virus, and if that continues it could lead to further economic fallout.However, historically low inventory, a humming economy, and rock-bottom mortgage rates are setting the stage for a highly competitive homebuying season.

Coronavirus already pushing mortgage rates lower

The current dip in the stock market is being caused by what will likely be diminished corporate earnings. The virus has already disrupted the supply chains of 75 percent of U.S. companies, and consumer demand will likely take a hit as offices close and travel grinds to a halt. But what matters more for housing is bonds, the price of which affect mortgage rates. When investors start thinking the stock market is too risky—like right now—they sell their stocks and buy bonds.

The increased demand pushes the price of bonds higher. The higher the price of bonds, the lower the interest payment—called the yield—is relative to the price. When bond yields are lower, mortgage rates are lower, too.This is why mortgage rates have dropped as a result of coronavirus. Rates are down to around 3.7 percent, and the Federal Reserve has already announced one target interest rate cut. However, mortgage rates are already at three-year lows, and it’s an open question how low mortgage lenders are willing to go, regardless of whether the Federal Reserve cuts its target rate again.

Where the housing market currently stands

The housing market is, in a word, tight. Consider Seattle, where home prices have risen dramatically as it has become one of the country’s leading tech hubs. And while the nation as a whole is suffering from housing shortages, Seattle’s available homes for sale dropped a dramatic 27.6 percent year-over-year in January. The housing market in other cities isn’t much better off: supply is at near record lows nationwide, and demand is near an all-time high. This combination means home prices are also near all-time highs in most cities as many potential buyers are bidding on a limited supply of homes for sale. At the end of 2019, the number of houses for sale dropped even lower, particularly on the West Coast.

Compared to a year ago, some cities saw double-digit percentage decreases in available homes for sale, although that is partly a function of there having been a supply spike in the second half of 2019, so the decrease looks more stark than it otherwise would. But the supply spike was short lived. “It’s actually back down near record lows in terms of the level of inventory for many markets and the country as a whole,” says Jeff Tucker, an economist with Zillow.

On the demand side, key indicators suggest there will be a lot of buyers in the market. Low unemployment, solid wage growth, and low mortgage rates are all signals of high demand. Todd Teta of ATTOM Data Solutions, a real estate data provider, says they’ve seen unusually high web traffic to real estate portals like Zillow and Redfin.

“We look at the portals, and traffic was way up relative to seasonality than what you saw in January of 2019,” he says. “All those indicators are looking pretty strong.”It’s hard to forget the recent history, but while the 2008 financial crisis saw both the housing and stock markets drop in tandem, this was an aberration in so many ways; the housing market crash was ultimately the cause of the stock market crash. Typically the housing market isn’t tied to swings in the stock market, because people don’t buy houses purely as an investment.

Housing is a basic need, and the decision to buy one is usually prompted by entering a new stage of life.A newly married couple is moving in together and is buying a house. A couple is having a kid and needs more space to accommodate the baby so they buy bigger house. Empty nesters have more house than they need after their kids go to college, so they downgrade to a smaller house.

A stock market correction doesn’t change these circumstances for people. Even in full-blown recessions, the housing market is incredibly durable. In some previous recessions home prices have actually gone up.

Another thing to consider is that as the stock market drops, investors look for safer places to park their wealth, hence the bond market going up. The stock market drop can have the same effect on the housing market. Roofstock, a platform investors use to buy and sell single-family rental properties, has seen huge spikes in web traffic since the outbreak of the virus, as global investors look for less volatile investment options. This added demand could be playing out across the housing market.

Are homebuilder supply lines being disrupted by coronavirus?

The short answer is yes. Nearly a third of home building material inputs come from China, according to the National Association of Home Builders, not to mention more finished products like bathtubs, sinks, appliances, and more.

This could delay home construction at a time when it has finally picked back up. Since the financial crisis, home building has struggled to keep pace with demand because of the cost of construction, lack of available land, and a construction labor shortage.

However, home builder confidence has skyrocketed in recent months, according to the NAHB. This signals that builders are more inclined to start construction on homes. To wit, new home sales—largely dependent on how many homes are built—have spiked dramatically in recent months, as have construction starts.

But if supply lines are disrupted, it could dampen the pace of home building and contribute to inventory shortages.

“Low interest rates help support demand, and consumer confidence readings in the coming months will be key, but the virus does heighten some of the longer-term challenges on the supply side in terms of housing supply,” says Robert Dietz, an economist with NAHB.

So how should I approach things heading into the spring homebuying season?

The conditions are set for the spring being an incredibly competitive housing market. Inventory is low, demand is high, and mortgage rates are low. If you already own a home, you might consider refinancing while rates are this low; other homeowners are already jumping at the chance.

However, it’s worth taking recent housing market history into consideration. Two years ago, similar conditions existed in the market and one realtor told Curbed that we were entering “the most competitive housing market in recorded history.”

That market didn’t materialize. Instead, home prices hit an affordability ceiling that kept many buyers out of the market. Eager sellers who listed their homes in hopes of taking advantage of the favorable conditions saw their homes linger on the market, leading to an inventory pile up not seen since the 2008 housing crash, particularly on the West Coast.

Home prices are still very high. If the same conditions existed and home prices were a little undervalued, it would likely create rapid home-price appreciation. But with prices already potentially maxed out, it remains to be seen whether current market conditions cause prices to break even higher or hit a ceiling.

The wild card in the housing market is coronavirus. If its impact is prolonged and induces even a minor recession, it could put a damper on demand—which would actually be welcome for buyers in particularly competitive markets. Still, don’t expect home prices to drop. It would likely just slow down the pace at which they are rising.

For more information like this, subscribe to Curbed’s newsletter, it’s pretty great.

Here’s Where People Are Actually Finding Their Forever Homes

One region reigns supreme.

There’s a reason every real-estate agent’s favorite phrase is “location, location, location.” When you’re making a decision as serious as buying a house, the property itself is just as important as the neighborhood—even the city. On the hunt for your forever home? We just uncovered the ideal road map. 

LendingTree recently analyzed data from the U.S. Census Bureau to determine where people are staying put the longest, and one region in the country stood out. New York City, Pittsburgh, and Philadelphia—all in the Northeast—ranked highest on the list, with people staying in their houses an average of eight and a half years. On the flip side, the study found that homeowners in warmer areas of the country (think: Las Vegas, Phoenix, and Austin) move more often and the listing prices tend to be higher. So while settling down somewhere cooler might mean shoveling snow occasionally, you’ll save some money.

Now that you know where to look for your forever home, it’s time to address what to look for. ips from buyers who have gone through the process:

Talk to the neighbors before putting in an offer. They’ll likely give you the inside scoop, and if they’re feeling generous, put in a good word with the sellers.

During the inspection phase, investigate the plumbing and condition of the sewer lines (ones made of cast iron will fail sooner rather than later).

Also, don’t let fancy new appliances sway you. These bright, shiny objects might be there to distract you from larger issues like mold in the walls or an incorrectly installed HVAC. 

Good bones are the key to a home that lasts a lifetime.

Need a recommendation for a great Realtor in one of these areas, or anywhere in North America? We would be happy to make an introduction to a wonderful person that we know + trust who will take care of you!

Increasing amount of Americans are getting mortgages before marriage licenses

Only 53% of first-time homebuyers are married.

According to the National Association of Realtors, the first-time homebuyer composition is now mirroring the change in marriage rates.

In the 1960s, more than seven in 10 American homeowners were married. Two decades later, in the 1980s, a peak of 75% of first-time homebuyers entering the market were married couples. Today, only 53% of first-time homebuyers are married.

According to American Housing Surveys, 35% of first-time homebuyers in 2017 had never been married, compared to 23% twenty years prior.

Married homebuyers made up 61% of the first-time homebuyers in 1997 and declined to 46% in 2013. But, that percentage increased over the next three years, hitting 52% in 2017.

“This drop is likely due to housing affordability,” Jessica Lautz, NAR’s vice president of demographics and behavioral insights said in a statement.

So while the amount of married homeowners has seen an overall decline in the past few decades, that’s not to say that an increasing amount of people are buying homes on their own.

“It is harder for a single-income individual to enter the competitive housing market the U.S. is facing today. Notably, while single men have traditionally had smaller shares of home buyers, the share of single men has now crept up to 10% of the first-time buyer market,” Lautz said.

More and more homebuyers are purchasing homes in platonic relationships, too. This share has gone up from 2% to 4% in the last year alone.

Why? NAR says unmarried couples and roommate buyers have a little advantage over single buyers helping them to increase their numbers – a dual income.

“Dual incomes allow them to navigate the housing market and perhaps allow them to purchase a home that is at a higher price point where they may face less competition in the buying market,” Lautz said.

West + Main Realtor Katie Robinson was one of those “put the Real Estate before the ring” first-time homebuyers, and it all worked out!

Katie’s Facebook Post:

"~feeling nostalgic today~ ⁣
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"Those of you that have known Tim and I since the beginning know that we first started living together in Tim’s 1 bedroom apartment downtown. It was disgusting! ⁣
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Anyways, I wanted to be a home owner and get out of that apartment more than anything! I was so sick of dumping money on rent in Denver. ⁣
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At the time, I had just turned 24 and honestly I had no clue what I was doing or where to begin with the home buying process. ⁣
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My older brother had recently become a licensed Realtor in Denver so I relied pretty heavily on his expertise. *annoying brothers is what life’s all about, am I right?* ⁣
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In the Summer of 2016 I found a home I loved out in Commerce City / East Denver. Unfortunately, I couldn’t qualify for a loan with my baby credit and I needed a co-signer. I called up my dad like I always do and begged him to co-sign... respectfully he told me to find another way. He has always taught us to work hard for our dreams. ⁣
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Tim and I had only been dating for 1 year at the time and had no firm plans for the future. All we were sure of was that we loved each other and we wanted to be home owners! We agreed to become financial partners before even being engaged and Tim stepped up to co-sign on my behalf. ⁣
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We have grown up a lot from the first time home buyers we were in 2016. Today is our last day in our first home together. This home has so many beautiful memories and it will always have a special place in my heart. So much that I just couldn’t sell it 🤣 ⁣
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Instead we begin a new adventure... as landlords!!! The decision to become home owners at a young age has saved us thousands that we would have spent in rent. ⁣
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We are so excited for our tenants and only hope they will love this community and home as much as we do. As we turn the page and start on this new journey together in Arvada, I want to express our love and gratitude to everyone who has helped us move and stay level headed! ⁣
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To my husband... thanks for entertaining my wildest dreams and for living them out with me, here’s to a new beginning #bittersweet”

If you have questions about your home purchase options, contact Katie or any West + Main agent, they will be happy to make recommendations, answer questions, and show you homes that you might want to put a ring on!

Millennials, Gen Xers, and Boomers in the Housing Market

Work-life balance, parenting, retirement—each generation handles these life challenges in a different way than the one before. And that helps explain just where each group is putting down roots.

Millennials are opting out of the bright lights, big city lifestyle for more affordable small cities. Baby boomers facing retirement want walkable communities with urban amenities, not just 55-plus developments. The perpetually forgotten Gen Xers? They're splitting the difference, opting for larger and more expensive markets while they have the cash to do so.

But there's a sea change happening as millennials, the largest U.S. generation ever, truly come into their own. It's already having far-reaching repercussions across U.S. housing markets, according to a new report by the realtor.com® economic team on home buying across generations.

“For the first time, we’re finally seeing evidence of millennials outcompeting older generations in more markets than not,” says Javier Vivas, director of economic research at realtor.com. "If millennials continue to grow [their market share] at this pace, we expect them to buy more homes than Gen X and baby boomers combined in the next year.”

Still, the major factors motivating buyers remain the same: growing families, the requirements of work, and the combined freedom and restraints of retirement.

"Life stages is what drives demand in housing," Vivas says.

So which are the markets that have what each generation needs most to buy a home and build a life? To find out, the realtor.com economic team looked at the current share of home mortgages taken out by each generation and the change in that share from last year. These were combined to yield a generational "score" that we used to rank housing markets seeing the most activity from each generation.

To see the breakdown in housing preferences between Millennials, Gen Xers, and Boomers, read the full article on Realtor.com

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