Why Do Millennials Wait Longer to Buy?

Selling your Southeast Michigan home? Get a home value report.
Buying a Southeast Michigan home? Get full MLS access. 

In real estate, we know the market always changes. One thing we've noticed is millennials aren't buying homes as frequently as their parents.

Previous studies revealed people rented for an average of 3.5 years before purchasing their first homes. Today, that number has doubled, with most people waiting over six years before making their first home purchase.

So why are millennials waiting so long? CNBC has discovered a few reasons. First of all, today's renters are paying more in rent, making it more difficult to save money for the down payment.

The second biggest factor is job security. Millennials wait until they have been employed with a company for at least 4 years before applying for a mortgage. This indicates how critical career stability is for the younger generation.

If you have any questions about today's video or about real estate in general, give us a call or send us an email. We look forward to hearing from you!

Top Reason to List Your House For Sale Now!

If you are debating listing your house for sale this year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes For Sale

The National Association of REALTORS’ (NAR) Chief Economist, Lawrence Yun recently commented on the inventory shortage:
“While feedback from REALTORS® continues to suggest healthy levels of buyer interest, available listings that are move-in ready and in affordable price ranges remain hard to come by for many would-be buyers.”
The latest Existing Home Sales Report shows that there is currently a 5.1-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market and well below November 2014 numbers.
The chart below details the year-over-year inventory shortages experienced in 2015:
Housing Supply Year-Over-Year | Simplifying The Market
Anything less than a six-month supply is considered a “Seller’s Market”.

Bottom Line

Let's get together and discuss the supply conditions in your neighborhood to be able to assist you in gaining access to the buyers who are ready, willing and able to buy now!

Here’s To A Wonderful 2016!

We hope 2016 is a great year for you both personally & professionally.

Where Is the Southeast Michigan Market Heading?

Selling your Southeast Michigan home? Get a home value report.
Buying a Southeast Michigan home? Get full MLS access. 

With steady economic and employment growth in our area, and our continued low interest rates, there has never been a better time to buy or sell a home in Southeast Michigan.

Statistics show that in the $150,000 and under price range, sales have picked up and inventory continues to fall. Sellers in this range are smiling, but buyers are getting very frustrated.

In the $250,000 price range, sales have been strong all year. However, in the last 90 days, we've noticed a slowing trend in inventory. Of course, this means conditions are getting better and better for sellers in this range.

In the $500,000 to $1 million price range, we are seeing slowing sales and a growth in inventory. This is the move-up market, where many sellers are buyers. So, the pace of buying and selling are generally hand-in-hand in the market segment.

Sales have slowed considerably in the luxury market of homes priced over $1 million. The continued rise in inventory has caused values to flatten, and in some market areas, even decline.

Overall, the market is making a shift from a strong seller's market to a more balanced market, which is great. There is no bad news here, just different news, which will require buyers and sellers to set new expectations.

If you have any questions about where the Southeast Michigan market is heading, please don't hesitate to reach out to us. We would love to hear from you!