Millenial generation represents boom of recent home buyers
The millennial generation leads the housing market in representing the largest share of recent buyers, according to the 2015 National Association of Realtors庐 (NAR) Home Buyer and Seller Generational Trends study.
Despite the economic and financial challenges young adults have braved since the recession, the survey additionally found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent, with millennials using agents the most.
Scott Cavinee, a broker with SWC Properties in Uniontown, said the trend is apparent in Fayette County having sold two homes this spring to men in their early 20s who work in the coal mines.
鈥淚t蘑菇视频 impressive to me,鈥� said Cavinee. 鈥淲e are selling homes to young buyers because of job opportunities now that we haven鈥檛 had in a long time.鈥�
For the second consecutive year, the study reported that the largest group of recent buyers was the millennial generation, those 34 and younger, who composed 32 percent of all buyers.
Ages 35-49 identified as Generation X in the study was closely behind with a 27 percent share.
The study went on to find that millennial buyers represented more than double the amount of younger boomer (ages 50-59) and older boomer (60-68) buyers at 31 percent.
The Silent Generation (ages 69-89) made up 10 percent of buyers in the past year.
Tom Simon, real estate broker and owner of Howard Hanna Real Estate Services in Belle Vernon, said about one-third of home buyers represent millenials in his area.
Lawrence Yun, NAR chief economist, said the survey highlights the untapped demand for home ownership that exists among young adults.
鈥淥ver 80 percent of millennial and Gen X buyers consider their home purchase a good financial investment, and the desire to own a home of their own was the top reason given by millennials for their purchase,鈥� he said.
Yun added that fixed monthly payments and the long-term financial stability home ownership can provide are attractive to young adults.
The Fayette County Board of REALTORS庐 pointed out in the study that 13 percent of all buyers purchased a multi-generational home, one in which the home consists of adult children over the age of 18, and/or grandparents residing in the home.
Simon said young people that traditionally lived at home or rented are getting into the housing market.
Another highlight is that it is increasingly common for buyers over the age of 59 to purchase townhouses and condos.
The older the home buyer, said the Fayette Board, the fewer compromises the buyer tended to make with their home purchase.
One aspect of the study that all generations of home buyers have in common during the first step in the home buying process is looking online for properties for sale.
According to Simon, the means of communication between a realtor and potential buyer among the generations is opposite.
鈥淭he millenial deals with communication differently than a senior or baby boomer,鈥� said Simon. 鈥淲here you can leave a message on the answering machine with (older) people, the millenial likes texts, email or social media.鈥�