Fannie Mae and USC research appear to show it will be in 2018. That would be great for Builders, Realtors and mortgage lenders.
If you build it – will they come? Builders are banking on it. With the shortage of urban affordable housing, new construction is on the rise in the suburbs. It is expected that Millennials will jump in at higher home price point than traditional first-time buyers.
Studies show that Millennial interest in a home is rising and they will spend a little more money on their first home.
With land and construction costs high, builders have a tough time bringing lower-priced homes to many markets. So, the new homes are priced higher. These should be homes Millennials can afford and desire.
- Could these new buyers offset a projected shortage in home sales and mortgages in 2018?
- Will builders be ready to come to market with what they want?
- Are lenders prepared to meet their financing needs?
Much has been written about Millennial’s expectations when it comes to identifying and obtaining what they want:
- Instant information
- Instant access
- Instant communication
- Instant gratification.
This is not your grandfather’s or your father’s generation.
On the other hand, many economists are forecasting the Fed will raise rates in December and 3 more times in 2018. What effect will that have on the millennials interest and buying power? What effect might it have on home prices?
The research says this Millennial group is about 88 million strong and ready to start buying homes. Will the increased demand from Millennials keep home prices out of reach for many low to moderate income home buyers?
The forecast is that the Millennials are ready to buy. Regardless of their price point, they will probably be homes available. Do you have the knowledge, trained staff, products, and technology to meet their needs?
What’s your plan for reaching this new generation of home buyers? Are you active on social media with online information, applications, approvals, and eClosings?
Do you have the technology to process loans more quickly with less information, while still ensuring the required loan quality and compliance? You’ll need It.
The game has changed. Play different