The topic of low housing inventory and skeptical sellers has been coming up a lot recently in the housing market. One reason for this is that baby boomers – retired or on the verge of retiring, were worried about selling during a pandemic and exposing themselves to the coronavirus. This is a natural concern, however, with the arrival of the vaccine things are likely going to change.
Many baby boomers are aware of the strong seller’s market we are in now and are beginning to see the advantages of selling. It is common practice for retirees and older individuals to sell their big family homes and downsize or to move closer to friends and family, right now, however, no matter the reasons, is the best possible time to sell bar none.
According to Realtor.com in the current market sellers got about 99% of what they asked for and many homes only lasted three weeks on the market. Baby boomers have made up 43% of the sellers in the current market and millennials made up the largest share of buyers with 37%.
Many baby boomer homes are being bought by first time buyers, with 31% of buyers being first-time home buyers, most of them millennials. 82% of younger millennials (age 22 to 30) and 48% of older millennials (age 31 to 40) were first-time buyers. Younger buyers are also more likely to pay above asking price, and this is likely because they have more time and working years to pay off the mortgage.
The most common type of home these buyers want are detached single-family homes that have a backyard and a garage. Multigenerational homes have become a big trend recently and the majority of these homes are being bought by generation X, in order to house older children and grandparents in one home.
If you want to sell or buy but you don’t know how these trends and statistics might affect you, you can talk to us at Amin Vali Real Estate Investment and we can help you decide if it’s the right time for you.