Millennials Aren’t Giving Up On Stores — They Just Want An Enhanced Shopping Experience

Millennials haven’t abandoned in-store shopping — but 71 percent of them believe a significantly enhanced retail experience would increase their in-store visits and purchases, according to findings from ROTH Capital Partner’s Millennial Survey.

The report also finds that the demographic is likely to research brands and products via digital means before shopping in stores: 43 percent prefer this method, compared to just 32 percent who prefer to complete the entire transaction online. And as we wrote earlier this year, approximately 82 percent of Millennials believe its important for a brand to have physical stores — compared to only 69 percent of Gen-X and 65 percent of Baby Boomers, according to a report from eMarketer.

At first glance, it’s surprising that the digital native generation (67 percent of Millennials say that they prefer to shop digitally) values brick-and-mortar more than any other demographic. But there isn’t a disconnect: Millennials simply want the option to shop both online and offline — and they even want to shop on their mobile devices while they’re in their favorite stores.

Improving The In-Store Experience

So, how can marketers deliver on the promise of a better in-store experience?

By now, it’s a given that brands need to give all customers the choice of how they prefer to purchase in a seamless, omnichannel manner. But two initiatives stand out for reaching millennials in particular.

The first is buy online, pick up in-store programs. Because millennials are reportedly likely to find inspiration online and to pick out products there before coming into a store, the option for in-store pick up let’s them complete the transaction even more quickly — though they may still choose to browse in the store once they arrive. In fact, across demographics, most shoppers make an additional purchase during in-store pickup.

In terms of improving the retail experience, stores functioning as digitally-equipped showrooms, like Blue Nile, have seen success with this demographic: Shoppers can look at and experience the retailer’s wares in person, but they can still place their order on mobile if they wish. Additionally, store associates equipped with iPads make it easier for shoppers to get the information they want — without having to wait in line for one checkout kiosk.

“Millennials want to be a part of the brand experience,” Alison DaSilva, EVP at Cone Communications, a firm specializing in cause marketing and sustainability, told eMarketer. “They want to see and touch the impact they have, and [that extends] to the companies they [patronize].”

They just don’t want to have to wait in line to do it.

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Buying a Home Can Be Scary… Unless You Know the Facts [INFOGRAPHIC]

Buying a Home Can Be Scary... Unless You Know the Facts [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

Many potential homebuyers believe that they need a 20% down payment and a 780 FICO® score to qualify to buy a home, which stops many of them from even trying! Here are some facts:

  • 40% of millennials who purchased homes this year have put down less than 10%.
  • 76.4% of loan applications were approved last month.
  • The average credit score of approved loans was 724 in September.

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Millennials Flock Towards Low Down Payment Programs

Millennials Flock Towards Low Down Payment Programs | Simplifying The Market

report released by Down Payment Resource shows that 61% of first-time homebuyers purchased their homes with a down payment of 6% or less.

The trend continued among all buyers with a mortgage, as 73% made a down payment of less than 20%.

An article by Chase points to a new wave of millennial homebuyers:

“We teamed up with Google to help us better understand what customers are searching for and how the home buying landscape is evolving. We found that millennials and first-time homebuyers are making a big splash in the market, and affordability remains top of mind.”

Among millennials who purchased homes, David Norris, Loan Depot’s Head of Retail Lending, said:

“It’s clear from the survey results that Millennials have a lot of anxiety built up about the home buying process.

There is good news, however, as there’s more flexibility than most Millennials think regarding how to qualify for a loan and what’s needed for a down payment.”

Bottom Line

If you are one of the many millennials who is debating a home purchase this year, let’s get together to help you understand your options and set you on the path to preapproval.

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Moving-Up to a Luxury Home? Now’s the Time!

Moving-Up to a Luxury Home? Now’s the Time! | Simplifying The Market

If your house no longer fits your needs and you are planning on buying a luxury home, now is a great time to do so! We recently shared data from Trulia’s Market Mismatch Study which showed that in today’s premium home market, buyers are in control. 

The inventory of homes for sale in the luxury market far exceeds those searching to purchase these properties in many areas of the country. This means that homes are often staying on the market longer which can eventually lead to a price change.

Those who have a starter or trade-up home to sell will find buyers competing, and often entering bidding wars, to be able to call your house their new home.

The sale of your starter or trade-up house will aid in coming up with a larger down payment for your new luxury home. Even a 5% down payment on a million-dollar home is $50,000.

But not all who are buying luxury properties have a home to sell first.

In a Washington Post article, Daryl Judy, an associate broker with Washington Fine Properties, gave some insight into what many millennials are choosing to do:

“Some high-earning millennials save money until they are in their early 30s to buy a place and just skip over that starter-home phase. They’ll stay in an apartment until they can afford to pay for the place they want.”

Bottom Line

The best time to sell anything is when demand is high and supply is low. If you are currently in a starter or trade-up house that no longer fits your needs and you are looking to step into a luxury home, now’s the time to list your house for sale and make your dreams come true.

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Builder Offering to Pay Off Student Loans for Buyers

Builder Offering to Pay Off Student Loans for Buyers | Simplifying The Market

Millennials are on track to become the most educated generation in history. This means they are also the generation with the most student debt. Depending on the type of degree earned, as well as the prestige of the institution attended, there are some millennials who graduate college with what equates to a mortgage payment.

For those first-time buyers, and even some move-up buyers, who took advantage of the First-Time Homebuyer Tax Credit in 2008, there is an interesting program being introduced by Lennar Home Builders and Eagle Home Mortgage.

“Borrowers with Eagle Home Mortgage’s Student Loan Debt Mortgage Program can direct up to 3% of the purchase price (up to $13,000) to pay their student loans when they buy a new home from Lennar, one of the nation’s largest homebuilders. The contribution doesn’t directly increase the purchase price of the home or add to the balance of the loan.”

The program allows borrowers, whose credit and income requirements qualify, to put down as low as 3% and have a maximum loan amount of $424,100. At the time of closing, Lennar contributes up to 3% to pay down student loans incurred while attending universities, colleges, community colleges, trade schools and other certificate-granting programs.

Jimmy Timmons, President of Eagle Home Mortgage, gave more context about the reasons behind the creation of the program,

“Americans are more burdened than ever by student loans, with $1.3 trillion in outstanding student loans spread out among 42 million borrowers.  

Particularly with millennial buyers, people who want to buy a home of their own are not feeling as though they can move forward. Our program is designed to relieve some of that burden and remove that barrier to owning a home.”

According to the Wall Street Journal, “housing observers said other builders are likely to look to mimic the program, which could help lure more of the critical first-time-buyer segment into home purchases.”

Bottom Line

If you are one of the many millennials who may have delayed purchasing your first home, or feel stuck in a house that no longer fits your needs, there are programs and options available to help you achieve your dream!

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Should I Buy a Home Now? Or Wait Until Next Year? [INFOGRAPHIC]

Should I Buy a Home Now? Or Wait Until Next Year? [INFOGRAPHIC]| Simplifying The Market

Should I Buy a Home Now? Or Wait Until Next Year? [INFOGRAPHIC]| Simplifying The Market

Some Highlights:

  • The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time.
  • Freddie Mac predicts interest rates to rise to 4.4% by next year.
  • CoreLogic predicts home prices to appreciate by 5.0% over the next 12 months.
  • If you are ready and willing to buy your dream home, find out if you are able to!

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What to Look for in Your Real Estate Team

What to Look for in Your Real Estate Team | Simplifying The Market

How do you select the members of your team who are going to help you make your dream of owning a home a reality? What should you be looking for? How do you know if you’ve found the right agent or lender?

The most important characteristic that you should be looking for in your agent is someone who is going to take the time to really educate you on the choices available to you and your ability to buy in today’s market.

As Dave Ramsey, the financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Do your research. Ask your friends and family for recommendations of professionals whom they have used in the past and have had good experiences with.

Look for members of your team who will be honest and trustworthy; after all, you will be trusting them with helping you make one of the biggest financial decisions of your life.

Whether this is your first or fifth time buying a home, you want to make sure that you have an agent who is going to have the tough conversations with you, not just the easy ones. If your offer isn’t accepted by the seller, or they think that there may be something wrong with the home that you’ve fallen in love with, you would rather know what they think than make a costly mistake.

According to a Consumer Housing Trends Study, millennials have already started to prefer a more hands-on approach to their real estate experience:

“While older generations rely on real estate agents for information and expertise, millennials expect real estate agents to become trusted advisers and strategic partners.”

Look for someone to invest in your family’s future with you. You want an agent who isn’t focused on the transaction but is instead focused on helping you understand the process while helping you find your dream home.

Bottom Line

In this world of Google searches, where it seems like all the answers are just a mouse-click away, you need an agent who is going to educate you and share the information that you need to know before you even know you need it.

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Top 5 Reasons Why Millennials Choose to Buy [INFOGRAPHIC]

Top 5 Reasons Why Millennials Choose to Buy [INFOGRAPHIC] | Simplifying The Market

Some Highlights:

  • “The majority of millennials said they consider owning a home more sensible than renting for both financial and lifestyle reasons — including control of living space, flexibility in future decisions, privacy and security, and living in a nice home.”
  • The top reason millennials choose to buy is to have control over their living space, at 93%.
  • Many millennials who rent a home or apartment prior to buying their own homes dream of the day that they will be able to paint the walls whatever color they’d like, or renovate an outdated part of their living space.

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Report: Homeownership Is a Precondition of the American Dream

Report: Homeownership Is a Precondition of the American Dream | Simplifying The Market

Hearth just released their 2017 State of the American Dream report which showed that Americans still see homeownership as an integral piece of the American Dream. The report confirmed that “all generations–including millennials–agree homeownership is very important to achieving the American Dream.

Americans ranked “owning a home I love” higher than any other options (including “starting a family” and “finding a fulfilling career”) as an important part of the American Dream.

Despite some claims that homeownership’s importance to the American Dream is in decline, the report found that the dream of homeownership remains strong.

Of Americans who said they think achieving the American Dream is important, 70% think homeownership is important to the dream, and 41% think homeownership is very important to the dream.

What about Millennials?

Hearth addresses the desires of millennials by explaining:

“Contrary to popular opinion, millennials who want to achieve the American Dream are 5% more likely than Baby Boomers to think homeownership is important. And two-thirds of millennial renters view homeownership as important to the American Dream.

Although millennials are often portrayed as fickle and transient, they actually seek the stability of homeownership even more than their parents.”

Other Key Findings from the Report:

  • Homeowners are 126% more likely than non-homeowners to view homeownership as a way to build wealth. Nevertheless, homeowners still overwhelmingly associated homeownership with a family living space.
  • Homeowners are 24% more likely than non-homeowners to see homeownership as an achievement that reflects hard work.
  • Millennials are 77% more likely than baby boomers to see a home primarily as a way to build wealth.
  • Baby boomers are 98% more likely than millennials to see a home as a way to pass wealth down to children or family.
  • Millennials are 29% more likely than baby boomers to see a home as an achievement that reflects hard work–an outcome we expected given that many millennials are still working hard to afford their first homes.

Bottom Line

The report concluded:

“This survey revealed a powerful finding: Across demographic groups, homeownership remains a precondition of the American Dream.”

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Apps Dominate Users’ Digital Time — But Is Interest In New Apps Falling?

Smartphone apps are still the way most consumers access digital content and information, but as the mobile marketplace matures and other avenues of interactivity emerge (e.g., voice-activation) new entrants into the app landscape may face greater challenges when it comes to grabbing attention.

That’s the view from audience measurement company comScore’s 2017 Mobile App Report, which outlines the levels of app engagement across 57 pages of charts.

If you’ve ever looked at your smartphone and thought about how many of those various apps you actually use, the report’s main findings are not very surprising. But it does provide a good deal of clarity by quantifying how consumers are using apps — and the degrees of how they’re not.

For example, the big takeaway from the comScore report is that a slight majority users (51 percent) do not download any apps in a month. Meanwhile, 66 percent of users do not download any paid-apps in a given month, comScore found, suggesting more difficulty for developers who want to rely less on ad support.

Source: comScore 2017 Mobile App Report

App Overload

Mobile apps account for 57 percent of all digital media usage, and smartphone apps alone capture more than half of digital media time spent, comScore notes. The disconnect is that since apps are the avenue by which media brands, developers, and places reach consumers directly.

But just as there are only so many TV channels and programs viewers can watch, there are only so many notifications and glances mobile users can afford to devote to their apps.

As for the that 57 percent activity figure for mobile app usage, the breakdown shows has 50 percent devoted to smartphone apps, while just 7 percent accounts for tablet app use. In addition, desktop comprises for 34 percent of time with mobile web 9 percent.

But all hope isn’t lost for app developers, at least if future consumers continue their patterns. Not only are younger users skewing the curve on mobile-apps time spent (those 18-24 are spending 3 hours a day in apps, vs. 2.6 hours for 25-34, and 2.3 hours for 35-44), they’re the ones who are downloading new apps. Of those 18-34, 70 percent say they’re always looking for new apps and they’re willing to pay for them.

Source: comScore 2017 Mobile App Report

Age-Old App Usage Issues

Millennials’ app usage is particularly relevant, since they represent mobile natives that have grown up in the decade since the iPhone introduced smartphone apps. These younger consumers still have a lot of excitement for new apps, suggesting that there is still room for many new apps to experience growth.

It’s older smartphone users who do not match Millennials’ level of interest in app usage. It’s likely that they might catch up as mobility and apps becomes a more completely ingrained in the digital experience for everything from online and in-store payments to accessing financial services to shared mobility and driving.

In any case, comScore’s report does contain some interesting factoids that highlights the difference between generations. Make of this example what you will: 55+ year-olds are 5x as likely as 18-34 year-olds to only operate their smartphone with two hands.

Millennials, on the other hand (pun intended), are more likely to position apps on their phones based on “thumb reach” and are increasingly “considering this dynamic.”

In general, Millennials are more likely to engage in curation of apps by location and accessibility on their home screens, comScore finds.

“While they love social and entertainment apps, they are also extremely reliant on more functional apps,” comScore says. “They can’t live without their apps, but also show signs of app fatigue.”

The Future Of App Usage

For all the talk about Google’s attempts to build up the concept of the Physical Web, where the browser takes the place of apps in anticipating users’ needs and connecting them with the resources they want, such as a restaurant reservation or a ride-hail, apps are looking more important thank ever.

“I believe that when we think about apps, the way we consume and promote apps today, will not remain the way it happens in the future,” The LBMA’s founder and President Asif Khan told us last fall. “I believe that there’s a future where apps will still exist, but the apps will be temporal, and that the delivery of the app, the promotion of the app, will be based on the physical presence type of idea.

“Once the ‘Internet of Things world’ really takes hold, and everything becomes smart and interconnected, we’ll see buildings ‘talk’ directly to the phone. And the phone can talk to the car. And the car can talk to the building and that ‘conversation’ can connect to the billboards and everything else around the user and their devices.”

 

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