More conservative buyers
Rising home prices and limited inventory of homes for sale in some areas may indicate you are in a seller's market. But that doesn't mean sellers will find madcap buyers willing to pay them whatever they ask for the house.
Buyers, especially millennials, have been conservative with their spending, says Pava Leyrer, director of training for Northern Mortgage Services in Grandville, Michigan. "They are sticking to their budgets," she says.
The younger generation views a house as a place to live and not the great investment that their parents once thought they had made, Blomquist says.
"Many of them have been through this cycle where home prices did not continue to appreciate and decreased dramatically over the last seven years," he says. "Millennials observed their parents go through that and it has changed their outlook in homeownership -- they are not confident that buying a home will result in appreciating value and that's leading them to be more cautious."
A survey by Fannie Mae shows that 40 percent of the millennial generation thinks buying a home is a safe investment with great potential, compared with about 50 percent of boomers. About 36 percent of millennials say buying a home is either a safe investment with very little potential or a risky investment with very little potential, according to the survey.