Millennials Are Changing The Home Buying Market

Millennials Are Changing The Home Buying Market

Millennials Are Changing The Home Buying Market:

-They’re opting for digital searches, deluxe homes, and the suburbs-  


As Millennials enter the housing market in greater numbers, they’re approaching it in a much different way than previous generations of home buyers. They’re bringing with them a new set of values and expectations.  

With a population of 83.1 million, Millennials now outnumbers Baby Boomers and represent more than one-quarter of our nation. The Pew Research Center defines a millennial as anyone born between 1981 and 1996.

Millennials also make up the fastest-growing segment of today’s homebuyers, according to a recent National Association of Realtors® report. The movement in the market by this generation is likely due to growth in their careers, higher income, and paying off student loans and other personal debts.

Although the most common reasons for recently purchasing a home differed between generations, the desire to own a home of their own was the main reason for  Millennials choosing to buy at this time.

“There’s been an influx of millennial home buyers as older Millennials have had some time to grow in their careers and pay off student debt,” says Stuart Eisenberg, national director of real estate and construction practice for accounting firm BDO USA.

Younger Millennials, meanwhile, more often rent as they begin their careers, but according to Eisenberg, the generational shift in home buying is just getting underway.  

Technology has transformed the way real estate is done 

Digital advancements have transformed the way real estate is done. Among millennials, utilizing the internet and mobile devices to find, view, and buy homes has become the norm.

Having grown up in a digital environment, millennials don’t want to spend days touring homes in person. Instead, they expect to shop for homes the same way they shop for everything else—online.

In fact, according to a Real Estate in a Digital Age report, 99% of millennials start their home search online and 58% found their current home on a mobile device. This figure is nearly double that of Baby Boomers using the internet to browse homes.

Digital advancements have also transformed the role of real estate agents. In the past, a REALTOR’s value came from providing important information about properties.

Now, the true value of a real estate agent is through their negotiation skills, professional relationships with other agents, ability to facilitate the transaction, and keeping up with marketing strategies in a fast-paced digital world.

Another digital impact is in how agents list homes. Tech-savvy Millennials are leading agents and brokers to introduce features like live streaming and video rather than traditional photographs, which have become the norm. 

Millennials, technology, and communicating with REALTORS®

Millennials also differ from previous generations in terms of how they use technology to communicate with REALTORS®. Texting represents the most immediate back-and-forth line of communication.

This generation uses text messages to express interest in a property, schedule appointments, and ask questions, while phone calls are typically reserved only for more urgent or pressing concerns.

NAR research suggests that agents are adapting to this demand for electronic communication, with 90% of agents communicating via text and 94% using email. Another 34% chat with clients through instant messaging. 

Millennials are choosing the suburbs and deluxe homes 

Although it’s taking them longer than previous generations, millennials are now buying homes and moving out of the city in larger numbers.

A recent Zillow study shows that almost half of Millenials (47%) prefer to live in the suburbs as opposed to the big city or rural areas. This generation of buyers want homes, but they don’t want just any old homes.

They are finding better options farther out from the city and are increasingly skipping starter homes in favor of something more deluxe. Roughly 45% of homebuyers aged 30 to 39 paid $300,000 or more for a home, according to the latest figures from NAR.  

In conclusion 

Millennials are now buying homes in droves and their habits are proving to shape the housing market in new and exciting ways. This generation’s preference for technology has changed both the way people shop for homes and the job of real estate agents – and could lead to a more streamlined home buying process. 

Partner With Oakland County MI REALTOR® – Tom Gilliam

REALTOR® – Tom Gilliam is your expert to buy or sell your home in Oakland County, Michigan. In Oakland County, MI, you need to find an experienced agent who knows the community.

Tom currently lives in the Oakland County area and is very familiar with the local market, neighborhoods, schools, and community issues. His office is located in the heart of Farmington Hills, with five additional offices throughout the southeast metropolitan area.

Tom is always ready to help families find the perfect home in the Oakland County area they want to live, whether it’s Farmington Hills, Novi, Birmingham, Troy, Rochester Hills, West Bloomfield, Bloomfield Hills, Ferndale, Royal Oak, Northville, Novi, Troy, Rochester, or Rochester Hills.

Give Tom Gilliam – “Your number one Oakland County Michigan REALTOR®” – a call today!

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Direct: 248-790-5594
Office: 248-737-6800
License #314578 

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Latest Update On The Current Housing Market – May 21, 2020

Latest Update On The Current Housing Market – May 21, 2020

Latest Update On The Current Housing Market – May 21, 2020Since the onset of COVID-19, forecasts on the housing market run the gamut from optimistic to pessimistic as things continue to change from week-to-week.  

In the early stages of the outbreak in February of this year, the market was cruising along at a steady pace with sellers continuing to gain leverage, and buyers benefiting from lower mortgage rates. The month of February showed some early signs of coronavirus outbreak, especially in those markets that were hit early and hard. 


Days on The Market – 15 Days Longer

Now, with states just beginning to open up, days on market is a half a month longer than this time last year, according to’s current weekly housing trends report. This is the biggest increase in time on the market since 2013.

“Days on the market” is the number of days that a property has been listed on the local multiple listing services (MLS) until a seller has accepted an offer and signed a contract. It can also be referred to as “time on market” or “market time.”

New listings were also down 28% with declines continuing nationwide. This trend is visible in local data as well as the national figures, with 69 of the largest 100 metros showing similar double-digit percent increases in time on market from one year ago.

“Mid-May is normally the time of year when homes sell the fastest,” as it’s in the thick of the busy spring home-buying season, says Chief Economist Danielle Hale. 

Median listing prices are still growing at a slower pace than before the COVID-19 situation, but according to, it’s expected that time on market figures will improve in late summer, especially as buyers try to make up for the missed spring season.


Home Prices Still Remain Strong

Although home sales have declined due to social distancing & economic unpredictability, home prices are still strong across the nation.

According to the National Association of Realtors® the median existing-home price for all housing types in March was $280,600 – up 8.0% from March 2019 ($259,700), as prices increased in every region.

The median home price gains mark 97 straight months of year-over-year gains (nationally). In March, the unsold inventory was equal to a 3.4-month supply at the current sales pace, up from three months in February and down from the 3.8-month figure (from a year ago).

According to, in April 2020, the median national listing price grew by only 0.6 percent year-over-year, to $320,000. 

Of the largest 50 metros, now only 30 still saw year-over-year gains in median listing prices, down from 45 last month. Forty-seven of the 50 largest metros saw their year-over-year listing price growth decrease compared to last month.


Market Data Summary 

Week ending

May 16

Week ending May 9 Week ending May 2 First Two Weeks March
Time on Market 15 days slower YOY 13 days slower YOY 11 days slower YOY 4 days faster


New Listings  -28% YOY -29% YOY -39% YOY +5% YOY
Total Listings  -20% YOY -19% YOY -19% YOY -16% YOY
Median Listing Prices 1.5% YOY 1.4% YOY 1.6% YOY 4% YOY


Partner with Top-rated Farmington Hills and Oakland County MI REALTOR® -Tom Gilliam

 2020 Best of Farmington Hills REALTOR - Tom GilliamA top-rated Farmington Hill and Oakland County MI real estate agent like Tom Gilliam can show you more properties and save you thousands when you buy a home. You need an agent who knows the area, processes a vast network of local connections, and has the skills to negotiate like a pro.

From first-time homebuyers to multi-million dollar investors, Tom continually strives to provide top quality service for his clients. With access to the most up-to-date MLS listings for Oakland county MI properties, Tom is able to match your lifestyle needs with the perfect home.

If you are ready to list your current property, Tom has the experience and skills necessary to handle the sale and marketing of your home for the best possible results. Tom employs the latest technology to deliver massive exposure for your home to drive responses from buyers.

Tom also partners with the most talented home stagers to ensure that your home is thoughtfully staged to showcase its features and amenities in the best possible light.

With over 25 years of local real estate experience, Tom will always protect your interests, advocate for you, and go above and beyond your expectations to ensure a smooth and successful transaction.

If you or someone you know is interested in buying or selling Farmington Hills or Oakland County real estate, please give Tom Gilliam a call today at 248-790-5594 or you can get in touch here.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Call: 248-790-5594
Office: 248-737-6800
Email: Tom @
License #314578

No Housing Crash in the Near Future: 4 Reasons Why

No Housing Crash in the Near Future: 4 Reasons Why

With home prices rising in many areas of the country, many people are worried that we’re headed for a housing crash like the one we suffered in 2008. But here’s the thing: it’s just not true. While it’s understandable that people would look at the current market, consider it a “housing bubble,” and assume it’s going to pop, the truth of the matter is the market today couldn’t be any more different than they were before the crash of 2008. no housing crash cash

Let’s take a look at four reasons why we’re not headed for another housing crash:

1. Banks have tightened their lending practices

The biggest contributor to the crash of 2008 was risky lending practices. Financial institutions had extremely loose standards in terms of who they’d lend to; they were giving out mortgages to people with low incomes, bad credit, and who were unlikely to be able to pay their mortgage once their interest rates increased. Getting a mortgage was easy, regardless of your financial situation. While this made homeownership possible for people who previously would have needed to rent due to lack of income or bad credit, it also led to serious problems when millions of people began defaulting on their loans, leading to the housing crash and the ensuing economic crisis.

Today, those predatory and unethical lending practices have been completely overhauled. Mortgage standards are much more strict, and lenders are much more cautious in who they grant loans to and the terms of those loans. This has led to greater stability in the market and will prevent another crash like the one we experienced in 2008.

2. Fixed rate mortgages are the norm

As mentioned, a huge part of the housing crisis of 2008 was subprime mortgages. The mortgages given to the riskiest borrowers were adjustable rate mortgages. Once the introductory period was over, borrowers saw their interest rates skyrocket and their mortgage payments quickly double or triple in size, making them completely unaffordable and leading to mass defaults on loans across the country.

But today, while adjustable rate mortgages still exist, they’re significantly less common. Fixed rate mortgages are the norm. When people borrow, they know exactly how much their mortgage payment is going to be for the life of their loan. This allows them to assess their budget and only borrow as much as they can afford, making it much less likely they’ll default on their loans in the future.

3. Today’s rising prices are a supply and demand issue, not the makings of a housing crash

In 2008, prices rose rapidly because everyone wanted to buy property. Real estate experts called it a “mania” because so many people who weren’t able to buy property suddenly had the ability to do so. Purchasing a home in the US accelerated to a frenzied pace, which drove up prices.

But today, prices aren’t rising because there’s a flood of frenzied buyers in the market. Instead, it’s a supply and demand issue. People are staying in their homes longer, which means there’s less inventory available in competitive markets. When there’s less inventory, there are more people vying for the limited homes available, which drives up property prices. This kind of price increase is just a normal part of a competitive market, not a reason to worry we’re headed for another housing bubble.

4. There’s economic growth to support rising prices

Perhaps the biggest reason you don’t need to worry about the US heading for another housing crisis, is the fact there’s economic growth to support rising prices.

The reason the most competitive markets in the country (like Silicon Valley or Seattle, WA) are rapidly growing and showing historic price increases is due to economic growth. The most competitive housing markets in the US are the markets with the most opportunity. People are flocking to areas where there are jobs, stable economic growth, and opportunities for the future. Potential homebuyers want to purchase property in a place they know will offer them plenty of career and economic opportunities.

When there’s economic growth to support growing prices like there are in today’s hottest cities, it makes for a much more stable market—and a market unlikely to head towards a housing crash.

If you’re worried that rising housing prices are an indicator another housing crash is on the horizon, take a deep breath. The conditions in the market today are completely different from the conditions in 2008, and thanks to the changes made in lending practices after the crash and our booming economy, you can rest assured we won’t see a housing crash anytime soon.

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