As the years pass a new generation of home buyers rise. Yes, members of the millennial generation have been buying houses for several years now, but now the vast majority of the generation has hit their 20’s, and so the number of home buyers will increase dramatically.
Lucy Mueller shares the words of Nela Richardson, the chief economist for Redfin, in her article “Why Millennials Are Better At Home Buying Than You”:
“Millennials will have a huge impact on the housing market for the next decade, just because of demographics alone. So whatever a few of them do, there’s enough of them that they’ll make a big impact.”
With this rising generation of home buyers, a change in the home buying dynamics is inevitable. This includes the relationship between buyers and their real estate agents and realtors.
Generation of the Techies
The millennial generation is technologically savvy and it shows in their house buying. This generation prefers text messaging and emails to phone calls and face to face interactions, and considers the internet an all-knowing source. This generation of buyers will undoubtedly do the bulk of their shopping via online Realtor websites, perusing inside and outside photos before ever setting up an appointment with an agent to see the house.
Generation of the Housing Crash
This generation also watched the housing market crash and the economy fall. A trust has been lost or at the very least shaken, particularly with financial lending institutions. Alan J. Heavens shares in his article “On the House: Millennial buyers are few, dependent on Realtors”:
ClosingCorp of San Diego, which provides residential real estate closing-cost data and technology for the mortgage and real estate services industries, found in a survey that two-thirds of the 1,000 millennials it surveyed were unaware that closing costs were involved in buying a house. If a millennial does know anything about closing costs, he or she finds out by talking to a real estate agent rather than a lender, the survey showed.
The millennial generation is looking more to real estate agents and realtors than previous generations for knowledge of the ins and outs of house buying.
The next decade will see what other changes may take place as the millennial’s flood the housing market with buying their first and second home