According to the National Association of Realtors (as reported by MarketWatch) a new generation of home buyers will enter housing markets next year, looking to buy bigger houses than past first time home buyers. Millennials — those born between 1980 and 2000 — are the predicted newcomers expected to buy their first homes in 2017.
Many millennials in DC, Maryland, and Virginia chose to move back home after graduating college. Though they are largely criticized for this by the generations to come before them, millennials may have had good reason to put off buying property a little longer. The National Association of Realtors (NAR) found that nearly half of all recent college graduates have upwards of $25,000 worth of student loans, putting them in debt immediately upon entering the job market.
Fortunately for our area’s millennials, the DMV has consistently proved itself in the job market and many recent graduates were able to secure good salary jobs immediately after college. This is also true in other cities around the country. So while these young professionals were living at home rent free, commuting to work, and putting off buying property, they were able to save up more money, work off their debt, and build up great credit.
Now the time has come for these millennials to purchase their first homes (and maybe time for their parents to downsize) and the housing market is sure to feel the impact in a few short months. NAR’s managing director of research told MarketWatch that many millennials have saved enough money living at home to buy something bigger than a condo or starter home, and that the majority of young adults from Generations Y and Z want more space, more land, and more house.
Therefore, the housing market could see an increased demand for homes in 2017, even more so than exists now in the real estate industry. If the supply stays low, competition is sure to increase in the coming months. Now is a great time to sell your house, but next year could be even better.
Whether you’re a millennial planning on buying your first house or a Generation X’er looking to downsize next year, consult the Keri Shull Team for expert advice on the upcoming trends and how they’ll affect the housing market in our area. Give yourself an edge on the competition by buying or selling with the best real estate team in the DMV. Contact us today to get started!