8 Hot Markets for Millennials, Gen X, Boomers

8 Hot Markets for Millennials, Gen X, Boomers

Because millennials, Generation X members, and baby boomers are in different stages of their lives, they are seeking different types of real estate markets that meet their specific needs. Realtor.com® found the hottest locations for each age cohort based on migration data for each of the major U.S. metros, home-search activity on realtor.com®, and the percentage of positive change in homeownership for each city from 2016 to 2018. The research shows that millennials are lured to places with strong technology and cultural centers, Gen Xers favor more affordable markets, and baby boomers are heading to the Sun Belt.

Millennials

Booming job markets are important to millennials, as are cultural and nightlife amenities. Realtor.com® found that the hottest millennial markets are:

1. San Francisco
2. Seattle
3. Houston
4. Dallas
5. Washington, D.C.
6. Denver
7. Boston
8. Ann Arbor, Mich.

Generation X

“Generation X is looking for housing affordability, where they can meet the needs of growing families,” Chris Porter, chief demographer at John Burns Real Estate Consulting, told realtor.com®. They tend to prefer warmer weather and more business-friendly states, which may explain why “Texas has been one of the fastest-growing regions in the country for a while,” Porter added. The hottest markets for Generation X are:

1. Houston
2. Miami
3. Dallas
4. Washington, D.C.
5. Riverside, Calif.
6. Austin, Texas
7. Odessa, Texas
8. San Antonio

Baby Boomers

“A lot of [baby boomers] are looking to downsize,” says Lori Corwin, a real estate professional at Realty Executives in Phoenix. They may be looking for homes that require little maintenance, including in 55-plus communities. The hottest markets for baby boomers are:

1. Phoenix
2. North Port, Fla.
3. Miami
4. The Villages, Fla.
5. Punta Gorda, Fla.
6. Austin, Texas
7. Riverside, Calif.
8. Cape Coral, Fla.

Source: “Millennial Meccas, Gen X Hot Spots, and Boomer Boomtowns,” realtor.com® (Feb. 26, 2018)

The Power of Flowers in Your Listings

The Power of Flowers in Your Listings

Forty-eight percent of the country has recently been covered in snow, according to the National Weather Service. If the cloudy skies and muted winter landscape have your listing looking ho-hum, try some greenery to get potential buyers thinking about spring.

According to a Harvard University study, seeing flowers first thing in the morning provides people with a boost of energy. Flowers can be used as a design tool to inspire emotion and connect people to the room or environment they’re in. What’s more, according to a Rutgers behavioral study, flowers are linked to life satisfaction, having an immediate impact on happiness and long-term positive moods by lowering anxiety and depression.

For inspiration on how to use flowers in your listings, Kelli Ellis, a founding partner of Design Campus and star of Design Therapy on the Design Network, and Mark Woodman, a designer and president of the Color Marketing Group, a nonprofit association that studies color trends, have created a “Two Minute Trends” video series. Here are three tips from the pair on design and color choices.

1. Flowers are a conversation starter and create a warm, approachable atmosphere. Place a centerpiece or bouquet near your open house sign-in table to get visitors talking and send a positive message.
2. Woodman says that bright, citrus colors and greenery in floral arrangements offer energizing power for open house guests and buyers on a showing tour. The foyer, living room, and dining room are ideal locations for these brighter colors.
3. Flowers also soothe negative emotions and invoke tranquility. They can help make a bedroom look like a retreat, or create a spa-like atmosphere. Pale lavender and blue-violet tones help reduce stress and bring a calm atmosphere to the room.

Source: “The Power of Flowers for Emotional Health,” Feb. 20, 2018, Michele Lerner, YourHome1Source.com

Spring May Not Be Pretty for First-Time Buyers

Spring May Not Be Pretty for First-Time Buyers

A shortage of homes and surging prices are hitting first-time buyers particularly hard heading into the spring season. The share of first-time homeowners dropped to 29 percent of all existing-home sales in January, down from 33 percent a year ago, according to the latest housing report from the National Association of REALTORS®.

Read more: 2018 Home Sales Off to a Sluggish Start

“First-time buyers are typically people with a tighter budget,” says Joseph Kirchner, realtor.com®’s senior economist. “They’re looking for homes on the more affordable end of the market, but that is where the lack of homes is most severe. … There’s plenty of demand, but people just cannot find a home on the market that meets their needs and they can afford. It’s not a good start for the spring market. The shortage will continue.”

In January, there were 15.5 percent fewer existing homes selling for $250,000 or less compared to a year ago. On the other hand, the biggest gains in homes were from those selling for $500,000 or more, which saw a 25 percent uptick.

Existing-home prices were up in every major region of the U.S. The West had the most expensive homes at a median of $362,600 in January, an 8.8 percent increase from over a year ago. The Northeast’s median prices reached $269,100 in January, up 6.8 percent annually. The South’s median home price of $208,200 is up 4.3 percent from a year ago, while the Midwest’s $188,000 median price is up by 8.7 percent.

“It’s very clear that too many markets right now are becoming less affordable and desperately need more new listings to calm the speedy price growth,” Lawrence Yun, NAR’s chief economist, said in a statement.

Source: “Lack of Homes on the Market Tames a Toll on First-Time Buyers,” realtor.com® (Feb. 21, 2018) and “Homeownership Is Increasingly for the Wealthy, According  to the Latest Sales Data,” CNBC (Feb. 21, 2018)

Home Sales Off to Sluggish Start

Home Sales Off to Sluggish Start

Blame it on the housing shortage: Existing-home sales posted their largest declines on an annual basis in more than three years, the National Association of REALTORS® reported Wednesday. All major regions of the U.S. saw monthly and annual sales decline in January.

“The utter lack of sufficient housing supply and its influence on home prices muted overall sales activity in much of the U.S. last month,” says Lawrence Yun, NAR’s chief economist. “While the good news is that REALTORS® in most areas are saying buyer traffic is even stronger than the beginning of last year, sales failed to follow course and far lagged last January’s pace. It’s very clear that too many markets right now are becoming less affordable and desperately need more new listings to clam the speedy price growth.”

Existing-home sales, which are completed transactions for single-family homes, townhomes, condos, and co-ops, dropped 3.2 percent in January to a seasonally adjusted annual rate of 5.38 million, NAR reports. It is the second consecutive month that existing-home sales have posted declines. Sales are now 4.8 percent below levels from a year ago and are at the slowest pace since last September.

A Closer Look

The following are highlights from NAR’s existing-home sales report, reflecting the latest January sales data:

• Home prices: The median existing-home price for all housing types was $240,500 in January, up 5.8 percent from a year ago.
• Days on the market: Forty-three percent of homes sold in January were on the market for less than a month. Properties stayed on the market an average of 42 days in January, down from 50 days a year ago.
• All-cash sales: All-cash sales comprised 22 percent of transactions in January, down from 23 percent a year ago. Individual investors tend to make up the biggest bulk of all-cash sales. They accounted for 17 percent of sales in January, up from 16 percent a year ago.
• Distressed sales: Foreclosures and short sales made up 5 percent of sales in January, down from 7 percent a year ago. Broken out, four percent of sales in January were foreclosures and 1 percent was short sales.
• Inventory: Total housing inventory at the end of January increased 4.1 percent to 1.52 million existing homes for sale. Inventories are still 9.5 percent lower than a year ago. Unsold inventory is at a 3.4-month supply at the current sales pace.

“The underproduction of single-family homes over the last decade has played a predominant role in the current inventory crisis that is weighing on affordability,” says Yun. “However, there’s hope that the tide is finally turning. There was a nice jump in new home construction in January and homebuilder confidence is high. These two factors will hopefully lay the foundation for the building industry to meaningfully ramp up production as this year progresses.”

Source: National Association of REALTORS®

Time to Refinance?

Time to Refinance?