It’s no industry secret that millennials have enormous buying power — the National Association of Realtors found that homebuyers 36 and younger made up the largest share of buyers this year at 34 percent. They may be an intimidating generation to some, but 66 percent of millennial buyers this year were first-timers, and without guidance throughout the process, they can be left with a dud of a deal or home.
Realtor Dana Bull knows that frustration all too well. Before becoming an agent, the Massachusetts native set out to buy her first home at 22 and “made every mistake in the book.” So she set off to help young buyers and found her niche as an agent who coaches millennials and first-time buyers around the country.
So will millennials carve out an even bigger market share in 2018? Will they be hampered by low inventory? And, more importantly, how can agents best meet their needs in the coming year? Bull shared her thoughts with Boston Agent in a recent Q&A.
What will be the top issue for millennials in housing in 2018?
2018 is already shaping up to be another competitive year. Even during the holiday season, the market has been unusually hot. Low inventory and steep competition is the new norm and is sure to be business as usual in the coming months. Bidding wars aside, a new issue could crop up this year. The new tax plan could hit homebuyers hard. The legislation proposes to cap the amount of loan interest and property tax deductions. This could cause homes in the lower- and middle-market price points to become even more competitive as buyers look to stay within the parameters that will be most beneficial from a tax savings standpoint. Limits to the capital gains exemption used by homeowners when they sell may also impact supply levels and keep buyers in their new homes for longer.
What can agents do to get more millennials to opt for traditional buying methods instead of turning to the internet?
Despite all of the resources available online, you can’t beat good-old fashioned mentorship and consulting from a Realtor. By combining online resources and guidance from an experienced agent, buyers get the best of both worlds. That said, if agents wish to attract young buyers they must be on trend with the hot buttons facing this demographic, such as:
- Loan programs geared toward first-time buyers;
- Technology that is on demand and streamlines the homebuying process; and
- Communication methods that are most convenient for this generation … hello, emojis!