My sons are Millennials. My Walnut Creek Lifestyle freelance writer is a Millennial. More and more of my clients and colleagues are Millennials, as that generation continues to age into home-buyers.
So, realtors like myself are starting to notice more trends with the market geared toward that age group. It’s a different real estate market for Millennials than it was for their parents – nowadays, they are graduating with huge student loan debts, having trouble finding lucrative work out of college, and then struggling to pay sky-high rents and mortgages once they do get jobs.
That said, Millennials are driving the real estate market right now, which has made the following observations more obvious.
From San Francisco realtor John Solaegui:
- There is a low inventory of single-family homes in San Francisco
- Millennial buyers don’t care about parking spaces (though this might be more prevalent in San Francisco – it’s contradicted by the graphic above!) with the rise of ridesharing apps – they’d prefer having decks or gardens for outdoor entertaining
- Areas like Noe Valley, Glen Park, Bernal Heights and The Sunset in San Francisco are extremely popular with Millennial buyers right now
From the California Association of Realtors’ REALTOR Magazine:
- Millennials are cashing in on equity at a historic rate, thanks to rising home prices
- One-third of Millennials say they are considering applying for a HELOC (home equity line of credit) in the next 18 months – much more than Gen-X or Baby Boomers
- HELOC’s are popular with Millennials because they can consolidate debt and afford home remodels with them
I think this is an interesting trend in our market. Home prices are high, but so are the debts and loans owed by Millennials, so we’re seeing more and more interest in new ways around that issue. And even more interestingly, Millennials are changing the way we market homes – who cares about parking when you don’t have a car, right?
Our annual BHG convention recently occurred in Las Vegas. It is at this time of year they announce award winners based on production. I am happy to share that I was the recipient of the Emerald Elite Award, for which any agent nationwise, within the Better Homes and Gardens Company, meets the following criteria:
- $325,000 GCI (Gross Commission Income, before taxes and expenses) OR 59+ total transactions
Thank you to all my great clients, referrals from friends and agents, team, lenders, inspectors, stagers and title reps! Additionally, I was awarded the 2017 Best of Walnut Creek Award in the Real Estate Agents category by the Walnut Creek Award Program. You can see a press release about that here, if you’re so inclined:
Whether you’re buying or selling a home, there will almost always be inspections done. Oftentimes, buyers will do roof, home, and pest inspections. Sometimes fireplace, foundation and sewer lateral inspections will be conducted as well.
Buyers are trying to determine the integrity of the house they want to buy – nobody wants to buy a home only to find out later that they will have to put additional money into it. However, sellers rarely know about these things off the top of their heads.
That is why it’s important, and beneficial to both parties, for inspections to be done. At the very least, a seller should do a pest inspection before going on the market to understand the cost of any issues, rather than deal with negotiating after something is discovered.
Once inspections are done, they become a disclosure. So, if a buyer gets scared off for some reason, the inspections are a disclosure for the next buyers. More than likely, this will incentivize the seller to work with the existing buyer. Occasionally, there are bad inspections with unreasonable pricing and there is no coming to agreement between parties. The seller will usually get another inspection from a more reputable inspector.
December and January are usually busy months with holidays, vacations and school breaks. But, contrary to popular belief, that does not mean the housing market slows down. On the contrary, actually!
Based on 2015 numbers, listing your home in December and January actually give you a benefit. You can garner multiple offers and close above list price. In Spring, you get the price increase but also more houses listed, which lead to many more choices for buyers, making multiple offers rarer (or, you’ll get fewer offers at least, like 3 vs. 8 in Dec./Jan.).
If you’d like to take advantage of this market in December and January, reach out to me. I’d love to help you navigate the holiday season weather you are selling or buying a home or just consult with you on the best overall strategy for you!