So far 2017 has been a very interesting year for real estate with growth in almost every segment of the market. In each community throughout south eastern Massachusetts we have seen homes sell for close to or above their listing price, leading to prices climbing and inventory dropping. This year has certainly been one for the books when it comes to real estate sales in our area. With fall coming soon people are asking “How long is the market going to surge?”
The good news is that currently there is no end in sight for this new oncoming surge of sales. Let’s start by talking about why the market is increasing and where the buyers are coming from. The baby boomer generation experienced this best first hand when they all were ready to buy homes, and just how extreme the competition of homes for sale was. Now we have generation X who were born 1965-1980 as well as millennials born 1981-2000 entering the housing market. Though a lot of people blame both of these generations for every issue the country has, it is not at all true as they have been saving up to enter the home buyers market.
Currently the baby boomer generation tends to be selling their larger homes and down sizing to condos, 55+ communities, as well as single level living situations. This is leading to a shortage in smaller, more manageable homes specifically single level ranches! The larger homes formally occupied by baby boomers are now selling to second time home buyers and even some lucky first time home buyers from the generation X group. The GenX grouping has been hiding for a while in parents basements or rentals, which most people viewed as due to their financial inabilities. We have all learned now that this is not true and they were just saving before entering the market place. Which has led to a surge of buyers who are capable and ready to purchase.
The GenX buyer is very tech savvy and tends to spend more time looking online then in person giving the impression of less buyers walking in the door, however they have proved time and time again they are there when they show up with offers in hand! We can no longer discredit this groups ability to purchase, and need to find ways to better market to this buyer segment. One of the best ways to do this is to use the technology we have from virtual tours to great photography. Use of these tools can help potential buyer get an honest feel for the home we are selling. The good news is Movementum Realty’s owner Shawn Moloney is from generation-X, he has a keen touch on marketing to millennials and leveraging off of technology based tools.
Now that leads us to the newest group of buyers: millennials. I know you are probably thinking how could someone between the ages of 17-36 buy my home when I worked my entire life for what I have and this is my 2nd or 3rd home. Well the truth is the internet has changed how wealth is earned and the speed that it can be acquired. The millennial generation has shocked us all with it’s non-conforming dressing habits, work habits, and desire to do what they want. The millennials have looked at generations in the past and laughed as they watched them sell their working hours to “the man” while they played with their new found technology and made money in unheard of ways. Companies such as Facebook, Twitter, LinkedIn, Space-X, Uber, and a multitude of others popping up all the time as they come from seemingly out of no where. These companies are now challenging titans such as Mobil, Apple, Microsoft, and so many more, while turning the financial world on the heads.
Working with millennials comes with it’s own unique challenge such as overlooking past biased ideas we had about them or the way they choose to act or even dress. These millennials are real buyers that have the money to make a deal happen. This uptick in willing and capable buyers is the reason I am predicting that the housing market is going to climb throughout the South Shore for the foreseeable future. If you are looking to buy or sell a home in today’s market it is important you understand the clients that you will be trying to market your home to. Let Movementum help you on your next home sale or purchase and you’re sure to have the help and the tools you need for success.