Realtor.com® Data Reveals the Top 10 Fall Markets for Millennial Home Buyers
SAN JOSE, Calif., Sept. 29, 2014 /PRNewswire/ -- Half of all millennials viewed real estate websites last monthi, but fewer homes on the market, increasing prices and tight lending standards have made it difficult for them to become home owners. The realtor.com® Top 10 Fall Markets for Millennial Home Buyers list released today shows that despite trends shown in the realtor.com® August National Housing Trend Report of strong prices and limited inventory, some markets are primed and ready for millennial home buyers this fall. Move, Inc. (NASDAQ: MOVE) operates realtor.com®.
"Millennials are a critical component of the first-time home buyer market segment, and getting this segment functioning again is an absolute necessity for bringing the housing ecosystem back to full health," said Jonathan Smoke, chief economist for realtor.com®. "Decreased first-time home buyer sales have lessened the demand for new construction, and limited housing's contribution to overall economic growth – perpetuating a cycle of limited job and income growth."
Realtor.com® national data shows the housing market slowly improving with strong prices, limited inventory and steady demand. In August, homes were listed at prices 7.50 percent higher than last year, but remained consistent month-over-month. The total number of homes on the market in August decreased slightly when compared to last year and last month. Properties spent 86 days on the market in August – six days less than last year, but four days longer than July.
Top 10 Fall Markets for Millennial Home Buyers
(Listed in alphabetical order)
| MSA |
Median Listing Price |
% YY |
Total Listings |
% YY |
% MM |
Median Age of Inventory |
% YY |
NARii Affordability Index |
| Akron, OH |
$119,900 |
0.00% |
4,070 |
-6.18% |
0.99% |
76 days |
-11.63% |
340.53 |
| Buffalo-Niagara Falls, NY |
$144,900 |
3.57% |
3,892 |
-5.94% |
4.06% |
67 days |
-6.94% |
304.84 |
| Charleston, WV |
$146,450 |
-1.71% |
1,358 |
7.18% |
3.35% |
83 days |
-8.79% |
240.79 |
| Grand Rapids-Muskegon-Holland, MI |
$159,900 |
6.67% |
5,679 |
-9.60% |
3.20% |
61 days |
-10.29% |
240.48 |
| Harrisburg-Lebanon-Carlisle, PA |
$174,900 |
2.94% |
5,186 |
0.89% |
-1.52% |
103 days |
1.98% |
265.94 |
| Indianapolis, IN |
$149,000 |
8.36% |
11,963 |
-2.46% |
0.66% |
72 days |
0.00% |
260.60 |
| Melbourne-Titusville-Palm Bay, FL |
$165,000 |
3.45% |
5,389 |
39.76% |
1.62% |
68 days |
-6.85% |
259.32 |
| Memphis, TN-AR-MS(TN) |
$154,900 |
0.00% |
6,129 |
17.75% |
-3.69% |
86 days |
10.26% |
236.93 |
| Peoria-Pekin, IL |
$129,900 |
0.31% |
2,264 |
-3.70% |
1.34% |
76 days |
4.11% |
291.78 |
| Syracuse, NY |
$149,000 |
-3.87% |
4,622 |
2.89% |
2.48% |
87 days |
-7.45% |
301.55 |
National Key Market Indicators for August 2014
| August 2014 |
Year-over-Year Percentage Change |
Month-over-Month Percentage Change |
|
| Median List Price |
$214,900 |
7.50% |
0.00% |
| Number of Listings |
1,930,569 |
-1.13% |
-2.47% |
| Median Age of Inventory |
86 days |
-6.52% |
4.88% |
"Millennials were hit the hardest by recession layoffs and job shortages, and many are still facing the financial aftermath of the downturn including reduced wages and depleted savings," Smoke said. "Monthly mortgage affordability and 20 percent down payments have become especially difficult as home prices increase. The neighborhoods on our list offer plenty of opportunity for millennials looking to get into the market in the next few months. Not only are first timers more likely to be able to afford homes in these areas, less competition in these markets means they are more likely to have their offers accepted."
All the markets included on the realtor.com® Top 10 Fall Markets for Millennial Home Buyers list have demonstrated strength in two key areas: housing affordability and increases in inventory. To be included on the listiii, local areas had to report a Housing Affordability Index over 240 and a month-over-month or year-over-year increase in inventory. The National Association of REALTORS® Housing Affordability Indexiv evaluates home prices based on the median household income for each respective area. Leading the realtor.com® Top 10 Fall Markets for Millennial Home Buyers list in affordability is Akron, OH. Families making the median household income in Akron can afford to buy a home that is 3.4 times the price of the median home in their area. The second most affordable locale is Buffalo-Niagara Falls, NY, where people can afford homes 3.0 times the median. In third place is Charleston, WV, where residents earning the median wage in their area can afford a home that is 2.40 times the median.
Each area also had to experience an increase in the number of homes on the market. The market with largest increase in inventory included on the realtor.com® list was Melbourne, FL, with a 39 percent increase in inventory compared to last year. The second largest lift in inventory was demonstrated by Memphis, TN, with an increase of 17 percent year-over-year and was followed by Charleston, WV, which increased 7 percent in listings compared to last year.
"Another advantage for millennials trying to close on a home this fall is investors are becoming less of a presence in the current housing market," said Lawrence Yun, chief economist and senior vice president of research for the National Association of REALTORS®. "In August, sales to investors fell to 12 percent, which is the lowest we've seen in nearly five years. For first-time home buyers this means reduced competition and less all-cash offers in the marketplace."
For the complete realtor.com® August National Housing Trend Report, please visit: http://www.realtor.com/data-portal/realestatestatistics
How Data Is Collected
Realtor.com® regularly tracks real estate data and develops monthly reports featuring the number of listings, median age of inventory, and median list price across the U.S. and in specific markets, as well as provides year-over-year and month-over-month changes. These reports are the only ones pulled directly from the realtor.com® database, where 90 percent of listings are updated every 15 minutes from more than 800 multiple listing services (MLS). We regularly review and update historical data to provide the most accurate and comprehensive market information. As a result, some markets may be subject to periodic adjustments in data.
For more information about Move, visit www.move.com or one of its many online real estate properties including realtor.com®.
Supporting Resources
- Read more about realtor.com®
- Follow @realtordotcom on Twitter
- Like realtor.com® on Facebook
- Download realtor.com® mobile apps
*"Most accurate" claim(s) pertain to the accuracy of home listings, are based on comparison with other national listing portals, and are based on the greater frequency of listings updating on realtor.com®.
About Move, Inc. and realtor.com®
Move, Inc. (NASDAQ: MOVE), a leading provider of online real estate services, operates realtor.com®, which connects people to the essential, accurate information needed to identify their perfect home and to the REALTORS® whose expertise guides consumers through buying and selling. As the official website for 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 smart telephones. Realtor.com® is where home happens. Move's network of websites provides consumers a wealth of innovative tools and accurate information including Doorsteps®, HomeInsightSM, SocialBiosSM, Moving.com™, SeniorHousingNetSM, homefairSM and Relocation.com. 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 the Silicon Valley — San Jose, CA.
REALTOR® and REALTOR.COM® are trademarks of the National Association of REALTORS® and are used with its permission. Move, Move.com, Moving.com, Top Producer®, TigerLead®, ListHub™, Doorsteps® and SeniorHousingNet™ are trademarks of Move, Inc. These and all other trademarks used in this work are the property of their respective owners.
Media Contact: Lexie Puckett, +1 805-557-3151, [email protected]
Forward-Looking Statements
This news release may contain forward-looking statements, including information about management's view of Move's future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of Move, its subsidiaries, divisions and concepts to be materially different from those expressed or implied in such statements. These risk factors and others are included from time to time in documents Move files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on Move's future results. The forward-looking statements included in this press release are made only as of the date hereof. Move cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Move expressly disclaims any intent or obligation to update any forward-looking statements to reflect subsequent events or circumstances.
i According to comScore June-August 2014 data
ii Data pulled from the National Association of REALTORS and Moody's Analytics
http://www.realtor.org/topics/housing-affordability-index
iii Data pulled from the National Association of REALTORS and Moody's Analytics
iv National Association of REALTORS® Housing Affordability Index June 2014
http://www.realtor.org/topics/housing-affordability-index
SOURCE realtor.com
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