Millennials In the Market 2

Millennials part 2

Right now millennials are the biggest group of home buyers in the country, but they have some serious competition the baby boomers.  The real estate market has become a generational war zone and baby boomers aren’t fighting fair, at least according to the millennials their not.  With Baby boomers retiring in great numbers most are looking to down size from larger more suburban homes to small homes closer to or in the city.  They are looking for convince and amenities within walking distance.  Now that the economy is head upward millennials are now making enough to move out of mom and dads basement or trade in the four roommates they have for none and buy their own home.  Great news except guess what they are looking for?  You guessed it smaller homes near or in the city with in walking distance of most amenities.    

Millennials being the socially connected, environmentally conscious group they are want to buy existing homes.  They love the history, location or architectural detail and they are usually close to downtown.  Guess who else loves all those things?  You guessed it baby boomers.  Baby boomers love history and being that most of them are retiring they are looking for something with a few projects they can work on to fill their days.

Why is any of this unfair you ask.  Well it comes down to two things that baby boomers have that millennial don’t experience and money.  Baby boomer Know how to negotiate to get what they want and being that according to NAR survey, only 3 percent of agents are under 30,and 81 percent were older than 45 Baby boomers are able to relate to and work with their agents a lot better.  Millennials who do business very differently now don’t really have the tools to negotiate.  And of course there is the money issue.  “Boomers will pay a premium if you can give them exactly what they want,” said Matt Robinson, principal at MRP Realty.  “Something closer to what was in their house, and that pushes up the price; they’re happy to pay for it.”  Many millennials are not well suited to compete being that most of them entered the market in the middle of the recession and during the lackluster recovery few have had time to build any real wealth.

This War of generations is driving up prices on not only starter homes and condos but rental prices too.  It is also cause a shortage of properties which is starting to concern most real estate agents.  Real estate agents have to start learning how to better work with millennials in order to stop the War but that’s a subject for another blog.

Cynthia Schmier, Broker/Owner
CRS, CDPE, CNE, CIAS, MDI, 5-STAR, SRS
RE/MAX Country
Cynthia@Cynthia-Online.com
(360) 400-3475
www.cynthia-online.com