NAR Study Show Millennials Lead All Generational Purchasers Relying On Real Estate Agents For Assistance

The National Association of Realtors (NAR) recently released the outcome of a study done named Home Buyer and Seller Generational Trends.   The report indicates that millennial home purchases increased over the year and constraints hampered many from leaving their parents homes.  Thirty six percent (36%) of all home purchasers were made by millennials leading all generational sects.  This was the fifth year in a row that the generation segment has led the survey.  Although most segments relied heavily on real estate agents for assistance in the purchase or sale of homes, ninety percent (90%) of all millennials were the most likely to purchase a home through a real estate agent.

The survey which evaluates the generational differences of recent home buyers and sellers found that millennial buyers prioritize living close to friends and family over a home’s location and proximity to schools.  Thirty six percent (36%) of all sales were made by millennials over the past year.  This was an increase of two percent (2%) over the previous year.  Gen X buyers ranked second 26 percent, a decrease of 2 percent (2%) and followed by younger baby boomers eighteen percent (18%) and older baby boomers at fourteen percent (14%).

NAR chief economist Lawrence Yun states market conditions are hampering millennials from further gains in homebuying.  Particularly steep competition from low inventory and increased purchase prices are affecting advancement.

"Realtors throughout the country have noticed both the notable upturn in buyer interest from young adults over the past year, as well as mounting frustration once they begin actively searching for a home to buy.  Prices keep rising for the limited number of listings on the market they can afford, which is creating stark competition, speedy price growth and the need to save more in order to buy.  These challenging market conditions have caused – and will continue to cause – many aspiring millennial buyers to continue renting unless more Gen Xers decide to sell, and entry-level home construction picks up significantly.”

Another interesting conclusion from the survey is that younger boomers were the most likely to purchase a multi-generational homes reciting that the main reason being they would like to purchase for their adult children to live at home.  They also took into consideration of their parents living with them.  The same went for Gen X purchasers as  what was found was a huge jump (over 10% increase in both categories) in the reason for the purchase was for their adult children (35%) and parents living with them (30%).

All generation segment continue to use real estate professionals in drove in order to secure a transaction.  As noted earlier,  90 percent, millennials were the most likely to purchase a home through a real estate agent. Overall, at least 84 percent in every other generation worked with an agent to close real estate transactions.

"On the seller side, Gen X and older boomers were the most likely to use an agent (91 percent), followed closely by millennials (90 percent) and younger boomers (88 percent). The near universal use of an agent to sell a home helped keep for-sale-by-owner transactions at their lowest share ever for the third straight year (8 percent)."

 Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/nar-study-shows-millennials-leads-all-generational-purchasers-relying-on-real-estate-agents-for-assistance/