MIAMI, June 25, 2015 /PRNewswire/ -- Realtor.com®,
a leading provider of online real estate services operated by News
Corp [Nasdaq: NWS, NWSA] subsidiary Move, Inc., today revealed that
millennials have become more positive when it comes to taking the
plunge into home ownership and are primed to gain market share in
the second half of the year, based on the results of its consumer
behavior survey of more than 12,000 respondents conducted from
Jan. 1, 2015 to June 15, 2015.
Jonathan Smoke, chief economist
for realtor.com®, revealed an in-depth analysis of these survey
findings during Wednesday's Mortgage Availability for
Millennials and Other First-Time Buyers panel discussion at the
National Association of Real Estate Editors conference in
Miami.
"Despite the slow indicators we saw earlier this year, 2015 is
on pace to be one of the best years for housing since 2006 due to
strong sales and higher than predicted home prices," said Smoke.
"Additionally, we're observing an uptick in millennial traffic and
sentiment that we expect will result in more first-time home buyer
sales in the later part of the year."
Smoke went on to explain that first-timers are especially
critical when it comes to the health of the market. "Historically,
they're the largest demographic of home buyers and can have a
dramatic impact on housing," he said.
Since the beginning of the year, realtor.com® has observed a
slight increase in older millennials – between the ages of 25 and
34 years old – visiting its website and mobile applications with
the goal of buying a home. In the first half of June, realtor.com®
saw its share of traffic represented by older millennials looking
for a home to purchase increase to 23 percent, as compared to 21
percent in January. In mid-June, it also observed its share of
those looking for property to rent decrease to 20 percent, from 26
percent in January.
Another revealing metric is the number of millennials who intend
to buy a home within the next three months. In mid-June, 65 percent
of 25-34 year olds responding to the survey indicated that they
intend to buy a home within three months, up from 54 percent in
January. Additionally, older millennials and first-time buyers are
very optimistic about buying. Both groups are slightly more likely
than the average buyer to say that they are "very likely to
purchase within the next 12 months."
"Last year, first-time buyer market share decreased as the year
progressed and dropped all the way to 27 percent in the summer,
according to data from the National Association of Realtors,"
stated Smoke. "This year, we're seeing an increase in millennial
demand that points to a strengthening first-time buyer demographic.
As the economy continues to grow over the next few years, we can
expect first-timers to return to a healthy level of 40 percent of
the market. A return to that level would add approximately 15
percent to the number of total homes sold."
In the first part of the year, millennials were held back by
some significant market challenges and were especially impacted by
the lack of affordable inventory. Forty-one percent of older
millennial home buyers cited that they "have not yet found a house
that meets their needs" as the biggest factor holding them back
from a purchase. Other reasons included difficulty finding a good
house within budget, not spending enough time looking, needing to
improve credit score, lacking a down payment, and currently being
in a lease.
Realtor.com® survey data is based on a daily representative
sample of site visitors. This analysis is based on responses from
Jan. 1, 2015 through June 15, 2015, which totaled over 12,000.
About Move, Inc. and realtor.com®
Move, Inc., a subsidiary of News Corp, is a leading provider of
online real estate services. Move operates the realtor.com® website
and mobile experiences, which connect people to the most important
and accurate information they need to find their perfect home and
to the REALTORS® whose expertise guides consumers through buying
and selling. As the official website of the National Association of
REALTORS®, realtor.com® empowers consumers to make smart
home-buying, selling and renting decisions by leveraging its
direct, real-time connections with more than 800 multiple listing
services (MLS) via all types of computers, tablets and smartphones.
In addition to the industry's most comprehensive and accurate
information, Move's network of websites provides consumers a wealth
of innovative tools, including Doorsteps®, Moving.com™,
SeniorHousingNetSM and others. Move supports real
estate agents and brokerages by providing many services to grow
their businesses, including ListHub™, the nation's leading listing
syndicator and centralized intelligence platform for the real
estate industry; TigerLead®; Top Producer® Systems; and
FiveStreetSM; as well as many free services. Move is
based in the heart of Silicon Valley – in San Jose, Calif.
Forward-Looking Statements
This document contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are based on management's views and
assumptions regarding future events and business performance as of
the time the statements are made. Actual results may differ
materially from these expectations due to changes in global
economic, business, competitive market and regulatory and other
factors. More detailed information about these and other factors
that could affect future results is contained in News Corp's
filings with the Securities and Exchange Commission. The
"forward-looking statements" included in this document are made
only as of the date of this document and we do not have any
obligation to publicly update any "forward-looking statements" to
reflect subsequent events or circumstances, except as required by
law.
Media Contact: Lexie
Puckett, lexie.puckett@move.com, 805.557.3151.
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visit:http://www.prnewswire.com/news-releases/millennial-sentiment-trending-more-positively-about-purchasing-homes-300104700.html
SOURCE realtor.com