An interesting post by Realtor.com suggested that Baby Boomers are making it more difficult for Millennials to purchase homes. If you're in the market for a home, you know that inventory is tight in Reno, Nevada, regardless of your generation. There are 18% fewer new listings and 7.4% fewer total listings this month than there were one year ago.
Nationwide, in an analysis conducted by Zillow, there are 3% fewer homes on the market today than one year ago. So while Reno's tightening market is a little more intense, buyers are feeling the pinch across the country.
Many Millennials are entering the market for the first time. These buyers are now between ages 18 and 34 and make up over half of America's first time home buyers and 42% of all buyers. The competition in the housing market comes in the size of home. Millennials and Baby Boomers are typically looking for the same size home- entry level for the Millennial and downsizing for the Boomer. On average, Millennials are buying 1800 square foot homes and Boomers are buying 1,950 square foot homes. Because Boomers are generally more financially secure, they can afford to increase their offer, while Millennials may have a more strict housing budget.
The rental industry is also affecting purchasing trends. Because the real estate market is so tight, many starter homes are being rented out instead of being sold. The market is extremely tight for the typical starter home so many Millennials are stretching their budget to afford something a little larger and more expensive than their predecessors would have purchased as a first home.
If you are in the market for a new home, there are several things you can do to increase your odds of having your offer accepted in Reno's seller's market. First, work closely with your lender. Know exactly how much you can afford and get pre-approved. When you submit your offer, the buyer won't be as concerned that your loan won't fund. Second, work closely with your Realtor. If we know just what you want, we can set you up with a home search that will notify you as soon as a home that meets your search criteria hits the market.
Curious about Reno-Sparks real estate? Contact us or call 775-453-4568 for more information.