For years, the millennials have kept real estate agents scrambling on their two feet, as this age group did not seem interested in purchasing their first homes. With the improving economy, will 2016 be a promising year for millennials and their purchasing power?
2016 may be the year when millennials will begin to purchase their first homes, Realty Times said. According to the publication, the millennials may have been looking for the right thing to buy.
The existence of properties specifically catered to the entry-level portion aka "affordable starter home" was recently introduced in the market. This type of property is designed specifically for first-time buyers, including the millennials.
D.R. Horton was the first builder to ever re-introduce this kind of product offering while other builders were focused on the "move-up and luxury buyers." This type of Express home will give first-time buyers the chance to purchase a home without being too heavy on the budget.
D.R. Horton has since then experienced a 14 percent increase in their revenues since the introduction of their Express homes began in 2014. Companies like TriPointe, Meritage Homes and Taylor Morrison have also followed the trend.
Meritage Homes now offers a segment, which it calls the "entry-level plus." This segment targets the younger population, as homes are being offered $50,000 to $100,000 cheaper than the average selling prices of homes in the neighborhood.
The increasing price in rents have also shifted the millennials' view toward home buying, as purchasing their own house seemed a more viable option than renting in the long run.
In a previous report from Bloomberg, real estate agents are not only worried about the millennials' delayed plans of buying homes, they're also worried about communicating with the younger population.
In the said article, it has been found that real estate agents, specifically those in the older age bracket, seem to be disconnected with younger clients.
The publication, therefore, suggested to keep abreast with the latest trends in communication and technology, while investing in a personal relationship with buyers.
