The Top 5 Real Estate Trends
Yahoo reports they were curious: What are
millennials looking for in their first
home?
What do repeat buyers want? What are the top 5 Real Estate Trends? What trends have changed, and
which ones haven’t? For
their first Home Buyer Study, they tapped into thousands of recent buyers and
real estate agents within the Better Homes and Gardens Real Estate network,
to find out. Here’s how the wish lists of next-gen buyers can
influence the hunt for your next nest and the sale of your current one.
The Top 5 Real Estate Trends
1. Millennials purchase with a plan to stay.
About a third of survey respondents buying their first home (36%) picture themselves staying for more than 10 years. Typically starter-home buyers stayed less than five years, but are now investing in higher-end homes, and 42% of millennials (those born between 1981 and 1996) surveyed wanted their first home to be their dream home. They want features traditionally associated with move-up buyers, such as good school districts and a house with more square footage, says Annette Cicinelli of Better Homes and Gardens Rand Realty in Westchester County, New York. “Move-up buyers now compete with first-time buyers,” she says. “And I’m seeing empty nesters looking into those smaller starter homes.”
2. The home-buying process takes longer than it used to.
First-time buyers say they spent an average of five months from research to closing; repeat buyers did it in four. Compare that to a 2012 National Association of Realtors report that found the process took first-time buyers only three months and repeat buyers two-and-a-half months. You can blame the internet and the information available for the lengthening time spent searching.
Another factor that can stretch the time frame is the loan process. That’s why agents consistently recommend getting preapproved.
3. Buyers are looking for move-in-ready homes.
Buyers used to seek out fixer-uppers. Outdated kitchens and baths, unnecessary interior walls, old carpet that might be covering salvageable flooring—all were high on the wish list, say, 10 years ago. People could usually get homes with those problems at affordable prices then eagerly update and personalize them.
Now more buyers want homes that don’t require a lot of work. In fact, their survey found that 52% valued purchasing either a newly built home or one that didn’t need any renovations or repairs before moving in. No doubt, it’s an issue of not wanting to spend time and money, with 35% of survey respondents concerned about budgeting for renovations.
4. The “kitchen crush” is stronger than ever.
Buyers across the board told us that the kitchen was the heart of the home, and most motivated them to purchase their home.
What features do real estate agents say buyers are looking for? Islands are a big requirement, in more ways than one—room for seating, please. High-end appliances are in demand, as are specialty options, such as a wine refrigerator or built-in coffeemaker, and extra function. People are asking for double ovens so they can easily entertain. Top-of-the-line kitchens include custom cabinetry, WiFi-enabled appliances, and an open floor plan with spots for specific tasks.
5. The biggest factor for millennial buyers: It’s a good investment.
When naming the factors involved in their purchase, repeat buyers focused on features (size and style, for example); millennial buyers said homeownership was a step toward financial stability and adulthood. About 65% of millennial buyers say they think it’s a good investment, along with a part of being an adult (40%), a way to put down roots in the community (40%), and a sign of being successful (31%).
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