Tag Archives: millennials

Generation X and the Housing Market: Middle Child Syndrome

gen-x-dame_0“Marsha, Marsha, Marsha!” – Jan Brady

Americans have been looking forward to the return of the housing market for years, and it finally feels like we are upon a shaky but continued upswing. But there is one generation that isn’t as quick to participate. America’s middle child: Generation X.

According to Harvard’s State of the Nation’s Housing 2015, Gen-Xers have the lowest homeownership since 1993 (to clarify, this generation consists of those born from 1965 – 1984). In fact, they are often considered the blame for the decrease in home buying as homeowners aged 35 – 39 dropped 23% from a decade ago. The market peaked at the same time these Gen-Xers were peaking to be first-time homeowners, so it was believed that they could relish in the decline in home prices. Instead, they have decided to remain in the rental market longer than their predecessors. The Baby Boomers have been keeping the 63.7% homeownership rate afloat. It is even said that the Millennials have a better chance to build careers and catch up to the Baby Boomers, completely bypassing Generation X.

And true to form, the reasoning behind this strange situation is a vicious circle. Because the “backlog” of rental properties is becoming larger due to the Millennials’ desire to move out of their parent’s house, rent for the current residents is increasing. The increase in rent has now made it more difficult to save for a down payment on a home, therefore keeping the renters where they are. The reason for this now falls back on stagnant wages. A report showed that households aged 35 – 44 are at mid-1980s range; those aged 45 – 54 are set back even further, dating back to the latter half of the 1960s.

Lastly, you have to consider this. Those that were around for the housing crisis are now a bit more gun shy to jump into the housing market. It’s only natural. 11 million were foreclosed on and only 2 million have returned. Just like any family, Generation X isn’t the golden child leading the pack like the Baby Boomers, nor are they the younger sibling that tries to imitate your every move, like the Millennials. Generation X will eventually come into their own and become more involved in homeownership as time goes on, but it will be a very slow progression. They aren’t like their other siblings.

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genxx

Rent-to-Own Isn’t as Easy as You May Think

_tma_Rent-to-own

Today I ran across a fact about current housing market that made me stop in my tracks. Homeownership is at its lowest in 25 years. Wait, excuse me? You must have your facts wrong, sir. We can’t seem to slow down this incredible surge in today’s market! Unfortunately, I was mistaken. And the reason behind it is not what you think.

According to the U.S. Census, the rate of homeownership fell to 63.7%, a rate that hasn’t been matched since 1990. But if housing demand is rising and pricing is rising, why isn’t homeownership? The upswing in the economy is actually having a reverse effect on the housing market. Hold on. Let me explain…

Because there is a rise in the economy, there are more millennials moving out of their parents’ homes and into a rental property. This increases the demand of rental properties. In fact, rental vacancies are at an all-time low. The more demand there is for these soon-to-be rental properties, the price for said properties begins to rise, which is what we can see from the latest market reports. Unfortunately, the rise in pricing for these rental properties doesn’t allow first-time buyers to buy. Instead, these single-family homes are bought by investors and rented.

And therein lies the homeownership hit. It really comes down to inventory and these days there isn’t enough of it. And sadly, this leaves a lot of lower and middle-class families unable to join the ranks of homeowners. The more prices rise and expectations are met and/or exceeded, the more homeownership will drop. David Blitzer of S&P Dow Jones Indices states, “Home prices continue to rise and outpace both inflation and wage gains. If a complete recovery means new highs all around, we aren’t there yet.”

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Selling Homes on the Go

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To be successful in anything you do, preparation is involved. We need to be ready for anything at any time in order to prove that we are right for the job. Before the electronic age ravaged our society, everything was dealt with at a much slower pace. Today, that’s not the case.

We all know that the real estate world is a very interactive profession. Not only are you trying to get your brand out to the public as much as possible, but your properties need to reach your client base as well. Clients are no longer willing to wait for an appointment, or for you “to get back with them.” A study done by National Assoc. of Realtors and Google revealed that 89% of new-home shoppers are using mobile search engines & apps for all of their house-hunting needs. They want answers and they want answers now.

This put a realtor in a position to be always Boy Scout ready. And since we can only do so much as a human, we are now relying more on technology. No longer are the days of lugging around tons of paperwork. Now a realtor needs to lug around a smartphone & a tablet, and consequently, extra batteries & chargers. It really is a magical time!

But with all power comes great responsibility. And with this immediacy, you are now expected to have all the answers at your fingertips. Thankfully, there are tools our there to prepare you for everything.

Cut to the chase

The majority of Gmail & Yahoo email users check their emails via a mobile device, so grabbing their attention needs to be direct and to the point within the subject line & header. Otherwise, it can easily be overlooked and/or deleted, thereby wasting all your hard work. Keep it simple. Stay in touch with your virtual clients via our csutom e-newsletter: it is the same as getting the printed version, but paperless.

Your mobile office

Apps like Dropbox & Evernote are just a couple of the endless list of apps available for you to keep all of your paperwork, files, & contact information at your fingertips. Faxes should be sent to your email, as opposed to the machine in your office. These days, your office needs to be virtual, and there is no reason why it shouldn’t be.

Showing houses the virtual way

Additionally, the virtual showing of a home is no longer a fantasy, but the way of the future. Programs like Facetime & Skype are allowing agents to show a property to a client without them being there. Take pictures & videos of your listings so your client base can view virtual tours on your website. The easier a buyer can navigate through the home-buying process, the more successful you will be. So take full advantage of the incredible advances created to streamline life as a realtor…just don’t forget to sync up.

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