It’s not the easiest time to buy a home. Rising interest rates and growing price appreciation have many prospective buyers feeling discouraged. That’s especially true of those 30 years old and younger entering the housing market for the first time.
Because of this, a growing number of younger buyers are looking to areas where the affordability challenge isn’t as steep. According to a recent CoreLogic report, these buyers are flocking to the West and Midwest, typically less expensive than the country’s coastal areas. Yes, that includes Michigan – though we do have some great lakes.
“There is a positive relationship between the share of young homebuyers and the affordability index, meaning there is a larger proportion of younger people purchasing in more affordable markets,” says one economist.
Chief among these markets is Grand Rapids, with 34% of all homebuyers 30 years old and younger. And with our gardens, art museums, cultural festivals, and lots of great food and drinks (beer, anyone!?), who could blame them?
We know that we work with some of the sharpest and savviest agents in the state and that many of you have already done a great job adapting your efforts to meet the needs of a growing number of Millennials as they enter their prime homebuying years.
With that said, though, here are a few more tips on how to better connect with younger buyers.
Set clear expectations
Sit down with your clients and give a detailed overview of every step and milestone of a potential transaction before you even set foot on a property for a showing. This preparation can help you and your clients avoid any unforeseen roadblocks and provide them with clarity and peace of mind as they embark on this journey for the first time.
Be a coach
Sometimes, young homebuyers can’t afford what they think they want, which can be a rude awakening. Encourage and educate them on the benefits of homeownership. Even if that first “starter property” isn’t their dream home, you can help guide them into taking on a long-term view by showing how a less expensive property now might be a path to bigger and better things to come.
Keep it positive
Rising prices, economic uncertainty, and global conflicts have many young homebuyers unsure of their financial future. With salaries having a tough time keeping up with inflation, many are finding it hard to keep up with rising rents and save for a down payment. You can keep your prospects’ spirits high by helping to educate them on all the financing options they have available.
Today’s housing market can certainly be a harsh reality for all buyers, let alone those just starting out for the first time. We hope these tips help you think about more ways to optimize your strategies to better reach today’s active homebuyers. When you’re ready to close your deals with confidence, the Transnation Title team can provide you with the personal solutions and trusted protection you can count on. Contact us whenever you’re ready!