2017’s most Important Generational Home Buyer & Seller Trends
For any home lender and real estate professional, understanding who is buying and why people buy are buying real estate in 2017, is of paramount importance. The only question is, what does the latest generational data from the National Association of Realtors actually say about home buying trends in 2017?
The Real Estate Market isn’t just about Millenials Anymore
Whenever new NAR data is released, home lenders and realtors go giddy with excitement when faced with data pertaining to millennial-specific buying trends.
Why this is is simple. NAR data, after all, routinely shows that millennials make up at least 34% of new home buyers. At the same time, 66% of such new home buyers are usually first time home buyers, Meanwhile, 85% of millennials can still be documented as viewing homeownership as a good investment.
There is only one problem. Despite eagerness to find and purchase houses for sale in Colorado, many millennials still aren’t aware of the multitude of low down payment mortgage options available to them.
Given the above, the average home lender (and realtor) has grown accustomed to targeting their marketing at new millennial buyers specifically. However, 2017’s NAR data has shown that the average home lender might actually be focusing their marketing on the wrong generation altogether.
Why Financing Homes for Generation X Buyers Might Make more Sense
Did you know that according to the NAR, home buyers in 2017 who are aged 37 to 51, are actually looking to finance houses for sale which are priced at $34,000 above 2017’s $227,700 market average?
At the same time, Generation X buyers aged 37-51 are 14% more likely to have suffered a distressed home sale in the past, as well as be 21% more likely to have wanted to sell their existing home earlier if it wasn’t for them being left underwater by the 2008 financial collapse?
In short, despite being 27% more likely to be burdened by significant student loan debt and various other financial inconveniences, the generation preceding today's millennials are actually the biggest spenders overall when it comes to looking for new homes for sale in 2017.
Other Interesting 2017 NAR Trend Analytics
While so-called Generation X-ers might be proving to be the biggest spenders in 2017, current NAR data also shows that buyers aged 37 and above are much more likely to purchase newly built houses for sale in Colorado. At the same time, data shows that most older buyers prefer newly built properties, primarily because in doing so, they stand to remove themselves from potentially costly renovation and on-going maintenance costs.
As for where people who are looking for new homes for sale in 2017 are actually buying, 54% of all buyers are still showing a preference for the suburbs as opposed to more metropolitan inner city areas. At the same time, convenient commuter distances and proximity to top school districts are still a top priority among all age groups lower than 61-years and above.
What all this Means for the Average Realtor & Lender
Overall, 2017’s generational NAR data shouldn’t be surprising. Millenials are still the nations biggest buyers and realtors and lenders need to cater for the millennial market accordingly.
What 2017's generational data does show, however, is that lenders and realtors might actually be overlooking the most determined of demographics to actually buy in 2017. After all, if Generation X-ers are today's biggest spenders and most likely to be buying new homes in the first place, shouldn’t realtors and lenders be catering for them accordingly?
Opinions expressed here are the sole responsibility of the author, and do not necessarily reflect the view of Fairway Independent Mortgage.
Ruth Vogt, Sales Manager
#LMB100023827, NMLSR# 257576
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