The American economy has been recovering fast for the last decade. About six years after the great recession, more Americans had consolidated enough money to buy a home while others opted for bank loans and mortgages.
The number of millennials seeking to buy homes is currently between 2 to 4 times higher than other age groups. Some experts say the main reason for this influx is the increased number of millennials that have joined the career market and managed to pay their student loans. Looking at the situation closely, there are more reasons than this.
More income for the millennials
Compared to the older generation, more millennials managed to join universities and graduate. The career market was ripe for graduates and most of those who graduated got jobs fast. The average salaries for graduate millennials range from $55,000 to $60,000 annually.
With this amount of money, they can save and buy a home in less than ten years or get a home loan and continue paying from their salary. Some plan to buy a property to rent it out and create a second stream of income. They buy homes and entrust them to property management companies. Affordable Property Management, a reputed company operating in Northern California, is the top choice for the millennials. It has been highly successful because of the trust from its customers and experience that spans 30 years.
You can trust the company to help you set rental prices right and offer full leasing services, all at an affordable flat rate. They thoroughly investigate tenants before letting them into your property. This is why the company has recorded less than 1 percent evictions for over 30 years.
The watch and wait approach
The older generations would not wait to buy property, but they would jump into the market as soon as they gathered substantial amounts. The situation is different with the millennials. The recession period might have affected them much and they developed a watch and wait for mentality.
High student debts also contributed to this approach because they had to concentrate on paying student loans first before planning to buy a house. Most of them had finished paying their loans by 2016 and they began saving for a new home. Once they had consolidated enough, they were ready to buy and it was like every millennial got ready at the same time.
Game-changing technology
It was harder to buy a home a few decades ago because buyers depended on print media, broadcasting stations, and word of mouth when looking for property to buy. It would take longer searching for a house, traveling to view and complete the buying transaction.
Today, there is a paradigm shift due to an enormous increase in technology. The millennials use the internet to search for homes and their smartphones have been very useful in this process.
The National Association of Realtors surveyed in 2017 and reported that 99 percent of millennials relied on the internet to search for homes to buy. Transactions can be done online and the processes are less tedious today.
Simpler methods of communication
Text message communication is preferred by most millennials and this trend is applicable even in the real estate market. When the millennials are communicating with realtors, they use text more than phone calls.
Communication by text saves time and the realtors can serve more people within a short time than having to spend several minutes on the phone with a single client. The millennials get all the information they need via text and only call when it’s very necessary.
This method of communication has helped millennials to close home-buying deals faster compared to other age groups. Digital advertising has also played a significant role in attracting more millennials into the home-buying business. Most realtors are using videos to advertise the home on sale, which has helped reach a larger percentage of millennials.