New Year Same Housing issues
New Year same challenges for buyers in 2020. The housing prediction for 2020 is it will be another challenging year for buyers especially entry-level homes. Lack of inventory will be the major roadblock again. In the 14 years, I have been in real estate I find every seller thinks their property is more amazing than the next guy down the street, and maybe it is. 2020 will be a year where Millennials will continue to buy, and babyboomers will continue to downsize or unload their homes. Generation X will be less of a major player, but they will make some adjustments and be in the marketplace. When talking about Millenials there are a lot of myths about what they want and what they don’t want.
Dispelling Millennial Buyer Myth
Myth: Millennials want tiny homes that are solely near mass transit or are very walkable.
Reality: The reality is they want a home that is a minimum of 1800 square feet and are located in the suburbs that offer the option of walking and driving to services.
Myth: If it’s not walkable they don’t want to look at it.
Reality: The truth is they don’t need to walk to everything, but if they can that is a great bonus when looking to buy a home. They have gotten over the fact that they might have to jump in the car to take care of daily errands.
Myth: Millenials are strapped with high debt and can’t afford to house.
The reality is the debt might not be preventing them from buying homes. There might be other factors preventing homeownership a reality. Some markets like Boston lack entry-level inventory making that home that should be entry-level pricing more expensive to buy. Also, many markets babyboomers are still in the marketplace and they have larger budgets than the Millenial buyer. They can complete and are winning but it’s not easy.
Myth: Millennials want a recession to hit hard so prices come down.
The reality they root for the economy but feel a correction is needed in the market place.
Myth: All buyers want turnkey homes since doing work is not in the cards.
The reality is many buyers want to put on their own touches especially if it means they can save money when buying a home. What are interesting women would prefer a home that has an updated kitchen where men care less about that detail.
Myth: Parking is a must especially garage parking.
The reality women care more about garage parking more than men when asked. 51% of women want garage parking while 41% of men really want garage parking.
Myth: An Ensuite is a necessity when looking at a home to buy.
The reality Men value this feature more then women do. When both were asked only 30% of women and 39% of men felt when looking at a home ensuite was a necessity.
Features both Millennials agree on
Myth: The home must have a great view.
Reality: This is something both men and women in the market agree on that the view matters less than the location that reduces there commute when looking to buy a home.
Other features in a home buyer don’t care about that much are pools, in-law suites, or mudrooms. They also enjoy smart technology but do need every aspect of there life associated with smart technology.
Regardless if you are Millennial, Gen X, or babyboomer all in wake of COVID 19 are putting private outdoor space, designated space for a home office is becoming amenities that all are willing to pay a higher price for then they would only a few months ago. New Construction is another where any buyer is willing to pay more for than a home that is currently occupied.
Have questions about the 2020 marketplace or thinking about buying or selling in the new year contact me.