As a new demographic of real estate buyers and sellers enter the market, economists point out that the timing of younger millennials and older baby boomers coming to the closing table could not be more opportune. A recent study released this week from PulteGroup Inc. finds that demand for housing from people between ages 18-34 is rising at the same time that baby boomers are beginning to sell their homes. The percentage of buyers ages 18-34 with an average income of $50K or more has risen significantly since this time last year. On the same note, baby boomers entering 65 or older are expected to test the waters of the real estate market and list their homes for sale, says Arthur Nelson, professor of urban planning at University of Utah.
Pultegroup also pointed out that about 30 percent of 2012 real estate sales were to first time home buyers. Vice President of Pultegroup, Fred Ehle added to the surveys finding by saying, â€œthe combination of incredibly low mortgage rates, rising rental rates and very low inventory levels, millennials realize now is a good time to purchase a home.â€ Many of the soon to be home buyers are already making financial decisions in order to achieve this goal. Obstacles such as student debt, down payment cash and advanced career placement are finally being subdued by a more promising economic outlook.
Nelson also mentions that home owners sell at a much higher rate once they hit age 60. This could represent a huge supply of home as 80 percent of adults own homes by the time they are 65 years old.
If you are thinking of entering the real estate arena, whether buying or selling, now may be the most opportune time we have seen in years! Buyers should take advantage of current real estate market conditions while sellers should catch the tailwind of all this activity.SI Real Estate offers highly personalized, multilingual, full-spectrum real estate purchase and sales services. We are a boutique for sophisticated investors, select owners or renters who may be upgrading locally, or those making traditional relocations. We also provide turnkey landlord and tenant management. Blending comprehensive insight into the Tampa Bay area with international perspectives for a worldwide clientele, we like to think that â€œSI Real Estate is Global Real Estate in Every Way!â€