My predictions for 2023 – Millennial first-time homebuyers for the win

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Judy Boyle, Realtor® Proudly serving the Borough’s and Beyond with honesty and integrity since 2003 www.judyboylecares.com JudyBoyleRealtor@gmail.com 508-561-7164
Judy Boyle, Realtor®
Proudly serving the Borough’s and Beyond with honesty and integrity since 2003
www.judyboylecares.com
[email protected]
508-561-7164

As we prepare to say goodbye to 2022, it is only human nature to set our sights on the new year with hope and renewal. Some of us make resolutions. Some of us set new goals. Whatever the new year means to you, it will likely consist of contemplations about housing because, let’s face it, we all need shelter. Yet it is so difficult to make sound decisions when the headlines are inconsistent.

The year 2022 in review was indeed a mixed bag. It started with a 3% mortgage interest rate and limited inventory, sending buyers into panic mode. By the middle of the year, interest rates were climbing, buyers were disappearing, and housing inventory was stacking up.  We are now closing the year with rates double what they were twelve months ago and an inventory level that would cause some to say favors buyers. As we enter a new year, everyone wants to know what’s in store for the real estate market.  While nobody has a crystal ball, the best we can do is look at the facts and put our faith in the industry experts who are in the know.  If I had to make one prediction going into 2023, it would be that millennial first-time homebuyers will be the winningest group in 2023.

Now, I know this is a pretty specific claim so I will first start by painting the picture of a millennial.   This category, often referred to as the Generation Y’ers, includes those individuals born between 1981 and 1996, give or take.  Some of the notable characteristics of this group include: 1) an intuitive knowledge of technology; 2) an ongoing passion for learning; 3) they are social (both online and in person); 4) they know how to collaborate and are willing to do so; 5) they are patient and flexible; and 6) they are good with their money.   Some millennials are even delaying marriage and living with their parents.

In my opinion, first-time homebuying millennials are currently the strongest category of all home buyers.  Millennials are taking the time to scour the internet to tap into every available resource available as it pertains to their home buying journey. They are reading reviews to find the most experienced and successful buyer agents. They will then follow the advice of their selected agent and allow that agent to guide them towards purchasing the property that is best suited for their situation. They seek recommendations from their agent for home inspectors, attorneys, and lenders to ensure their interests are well-protected. Millennials also understand the benefit of owning versus renting.  They understand that paying 6% interest, as predicted by industry experts through 2023, is not a bad thing when they take the time to educate themselves on all of the tax benefits and how home appreciation offsets their mortgage payment. They are willing and able to be patient and find the best investment that will continue to increase in value, as expected for years to come.

And what makes this category of buyers the most attractive to home sellers who realize the market has shifted? Since they often live with their parents, millennials have large down payments, low debt and high credit scores. They can also offer flexible closing dates.  They have no existing home to sell and are realistic about their purchases.   Whether or not you are a millennial, if you fit this category of buyer, 2023 will be your year.

Indeed, the perfect storm of real estate is over. Interest rates are rising but are still historically low.  Homes are not appreciating at the same rate as they had between 2019 and early 2022, but low inventory and a healthy buyer pool will force values to remain steady and will likely increase in some areas throughout 2023.

Bottom line, if you are thinking of buying, it is always a good time to find quality of life through real estate. If you are thinking of selling, your window of opportunity is still wide open and not closing any time soon.  For everyone, I wish you all a healthy and prosperous 2023!

 

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