Are student loans and avocado toast really keeping Millennials from buying homes?

The following article from Arren Kimbel, with the Dallas News, takes a broad look at days on market. Each area of Dallas is experiencing the market differently. The lower priced properties (from $300,000 and below) are still selling very quickly. Often within the first few days of coming on the market. (if priced right from the beginning)
The market is reflecting that the higher  priced homes are taking longer to sell, creating a higher days on market number (seen as DOM on MLS printouts) It makes sense  that there would  be fewer buyers for the higher priced homes. In fact the month supply of housing has grown to 4.4 months for houses $400,000-$500,000 and it increases by one month supply for each $100,000 up to a 10 month supply of houses $1,000,000 and above.
The same tried and true pricing strategy holds true today as it always has…If a house is priced right and looks good inside and out, it will sell. Three things sell a house, location, condition and price. I can change two of those things, price and condition to reflect the location.  Seller’s need to take a realistic look at the market and price their house accordingly.
– Mary Beth Harrison 

millennial-home-buying

Jake Buzzard is, as those millennials say, “living his best life.”

The 32-year-old central Illinois transplant has worked his way up to a well-paying job as a retail manager for a large multinational company in Grand Prairie, Texas. He oversees hundreds of workers, he’s in a committed relationship and, along with a growing number of his generation, he’s got a house: a $500,000 one in a swanky Oak Cliff neighborhood of Dallas, which he closed on in April.

Millennials are buying homes. Never mind the punditry that the plastic straw-hating snowflakes are stuck in overpriced apartments because they keep opening their wallets for $7 avocado toast. They made up 34 percent of American home buyers in 2017, more than any other age group, according to the National Association of Realtors.

And though a bevy of economic factors are working against them, millennials are driving developers to make their communities experience- and amenity-rich, inclusive and connected to the cities around them.

Millennials are on the verge of becoming the country’s biggest generation, and they make up the plurality of the labor force, according to Pew Research Center. And born as early as 1981, they’re also a lot older than many expect, with the most senior of the generation in their mid-to-late 30s.

“At that age, they want the same things their parents did: a house in a safe neighborhood with good schools nearby,” said Randy Guttery, director of real estate programs at University of Texas at Dallas.

Around 70 percent of millennials expect to live in single-family homes by 2020, according to a study from the Urban Land Institute, a real estate and land use think tank.

Buzzard’s home — his first, as it took longer than expected to save the money to buy — was a new build, rare for buyers of his generation. It was in his price range and close to his and his girlfriend’s jobs, which he said were must-haves for the new digs. And it’s in Kessler, an area near to the bars and culture of Bishop Arts and downtown.

Proximity to culturally rich areas is important for millennial buyers, said Jolie Barrios, a 27-year-old Realtor with Clay Stapp and Co. who worked with Buzzard to find a house. She said more than half of her transactions since 2017 have been with buyers in their late 20s or early 30s, a function only of her age, which she said makes young clients more comfortable, but also of the dawn of the millennial homeowner.

But even if these buyers want homes at the same rates as their parents, their interactions with the world of real estate don’t look the same.

“They’re pretty particular,” Barrios said. “They want a good price, something that’s eco-friendly and something that’s recently updated. You know, it’s instant gratification. We all work a lot, so we don’t have the time to do a renovation when we buy.”

They also want community, connectivity and inclusiveness, said Tony Ruggeri, the millennial co-CEO of Republic Property Group, a developer that is building large communities at Light Farms in Prosper and Walsh in Fort Worth.

“We’re not doing golf courses anymore, we’re doing food and beverage,” Ruggeri said. “And the concept of walls and gates, the instinct to insulate yourself from the outside world, that’s completely inverted.”

 

 

Information Courtesy of 

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