The National Association of Realtors "2021 Home Buyers and Sellers Generational Trends" report found 37 percent of buyers are millennials and make up the largest share of buyers in the market. While they avail of more online tools in their home search, they ultimately seek a Realtor's help in navigating the homebuying process.
According to the study, 28 percent of homebuyers between the ages of 22 to 30, those who make up younger millennial buyers, lived with relatives or friends before purchasing a home of their own. This is higher than any other generation.
With inventory dropping to record-low levels last year, many would-be homebuyers had difficulty in their home search. Nearly six in 10 homebuyers between the ages of 22 to 40 said just finding the right property was the most challenging step in the buying process.
As is always the case in real estate, location proved to be an important component among buyers. Fifty-four percent of homes purchased by older millennial homebuyers, those ages 31 to 40, were located in a suburb or subdivision. Out of this age group, 69 percent said the quality of the neighborhood influenced their neighborhood selection. Among younger millennial buyers (74%), an even stronger consideration when deciding on a neighborhood was proximity to where they worked.
"The younger millennials overwhelmingly answered that they prefer to live closer to work, as many don't want a long commute, and this was evident in their buying habits," said Jessica Lautz, NAR's vice president of demographics and behavioral insights. "Additionally, both of these groups also placed a high value on being close to family and friends as 57 percent said that dynamic factored into what neighborhood they ultimately chose."
Lautz added that 47 percent of older boomers and those in the silent generation were similarly heavily influenced by a desire to be close to family and friends. Being close areas with shopping and a health care facility was also an influential factor in choosing a neighborhood.
The usefulness of virtual tours has skyrocketed due to the pandemic, especially among 22- to 40-year-old buyers, though more than half (51%) of buyers from all generations primarily wanted their agent's help to find the right home to buy. Homebuyers needed a Realtor's help with brokering the terms of their sale and to aid with price negotiations. According to the NAR report, the oldest and youngest age groups, those 66 and older as well as those ages 22 to 30, were more likely to want their agent's assistance with paperwork.
"Buyers today have more online tools available to aid them in their home search. The bottom line is in this competitive market, it is most important to have a skilled Realtor who can negotiate the best outcome for their client. In a good transaction, it is more than the price," said Joanne Fraser, president of the Silicon Valley Association of Realtors. "The value of a Realtor lies in their ability to negotiate the best terms for their client and frame the offer in such a way that it is in the best interests of their client."
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.