Trending #RealEstate | Kansas City Homes

Posted by Kansas City Homes on Thursday, August 13th, 2020 at 10:22am.

Kansas City Homes - Millennial Homebuyers

 We have all seen and experienced the riptide that was the U.S. economy run roughshod over the analysts’ and experts’ predictions for 2020. “Record-low” and “record-high” have become common to hear when discussing any market across the country as of late, and while the drastic dip can be seen in many of these markets, some experienced the opposite effect. Of all the fluctuation and uncertainty, real estate has stood fast as one of the market buoys, seeing incredible shifts  in homebuyers and sellers as the industry works through record breaking conditions and one of the most significant market booms in industry history. In this blog we are taking a look at what trends have developed as a sum of the uncertainties and fluctuations, and what the future holds for real estate here in Kansas City and across the country. 

Kansas City Homes - Millennial Homebuyers
Let’s take a peek into where the market conditions are sitting as of today. Starting off with mortgage rates. As of the beginning of August, mortgage rates were averaging around 2.99% for a 30-year fixed rate. These numbers are fierce indicators of an economy in flux, but give significant advantages to homebuyers looking to enter the market for the first time. Meeting these record low numbers is a shortage in the amount of homes being listed, with record-lows reported in inventory across the country. Here in Kansas City specifically, we are seeing above 30% drops in inventory based on year-over-year numbers. This is leading to increasing listing prices and competition for the houses on the market. It is not uncommon for a house to receive almost 10 offers before closing in this hot market.  These three factors remain at the top of the list as major catalysts for this strange and unprecedented summer buying market and as a result, have produced some interesting trends to look at for the summer. 

 

Trend #1 - Millennials Have Arrived

So now let’s deep dive into these trends starting off with one of the most important, millennials have arrived on the homebuying scene. “Millennial” dictates anyone born between the years of 1981-1996 and they came thundering into the scene the last few years, where 2019 saw the group command a 37% share of the market according to the National Association of REALTORS®, which overtakes all other groups and becomes the largest buyer demographic group in the country. Not to mention that experts are predicting that millennials will make up 20 million additional households by 2025.

This is critical to the industry, namely because millennials are looking for different amenities in their homes then their mothers’ and fathers’ generation. Proximity to living a healthy lifestyle, like how nearby are hiking trails, gyms, and dog parks for their furry friends have emerged as crucially important to millennial homebuyers. Searching parameters can be seen more in depth here (Kansas City Homes Search). Aesthetics make the difference and that is further proven with the overwhelming majority of millennials gravitating to listings that have video marketing associated with it, which brings us to the next trend…

 

Trend #2 - Video Marketing is Going Up

Let me hit you with a quick fact, according to Carrot, homes with aerial photos from a drone sell 68% faster than those without. Follow that up with 70% of sellers want to list their home with an agent who uses video marketing. Video advertising is gaining incredible popularity over the last couple of years with everything from home listings to home recipes to social media emphasizing and promoting the use of video. Video routinely keeps viewers captivated longer than text ads and is more visually appealing than photos. With so many of us staying home, video is our window to the outside and it has never been more important to utilize it.

 

Trend #3 - Beginning Your Search Digitally

Kansas City Homes - Millennial Homebuyers

For buyers under the age of 36, 93% begin their home search online. This number is staggering and represents one of the more drastic shifts in real estate we have seen in the last decade. Home listing sites like our ‘Kansas City Homes Home Search App’ are providing depth to your search like never before, letting you see commute times, proximity to lifestyle locations, and narrowing down your search with parameters like school districts, age of property and basement options to help you find exactly the home you are looking for in a quarter of the time. 

Searching for your home online grants bonuses to millennials so that they can be prepared in knowing what they are looking for before reaching out to an agent. With millennials changing the housing market as we know it, many more trends are emerging out of the fray, which we will cover in our part 2 blog, coming soon. 

Kansas City Homes - Better Homes and Gardens Real Estate

Leave a Comment

Format example: you@domain.com
Format example: yourwebsitename.com

Sign Up for Home Search