The last two years the millennial impact on the housing market has been the main topic by many writers in the real estate business. Are they the reason for the housing inventory shortage in Northern VA?
The problem is the headlines often contradict each other. Some report this generation doesn’t want to own a home and the reason for the the dip in homeownership. Others write they are becoming the largest share of first-time home buyers, so which is it?
It is true that millennials have achieved milestones like marriage , kids, and home ownership later in life than previous generations. With this said they are also not solely to blame for today’s housing market trends.
A Freddie Mac Report explored the impact of the Silent and Baby Boomer Generations on the housing market. If millennials are unable to find a home to buy at a young age like their predecessors, then who is living in those homes?
The answer: Seniors born after 1931 are staying in their homes longer than previous generations, choosing to “age in place.”
“this trend accounts for about 1.6 million houses held back from the market through 2018, representing about one year’s typical supply of new construction, or more than half of the current shortfall of 2.5 million housing units estimated in December’s Insight.
Older Americans prefer to age in place because they are satisfied with their communities, their homes, and their quality of life.”
According to the National Association of Realtors, inventory of homes for sale is currently at a 3.5-month supply, which means that nationally we are in a seller’s market. The Northern VA real estate market currently has a 2.1 month supply of inventory. A ‘normal’ housing market requires 6-7 months inventory, a level we have not achieved since August 2012.
“The most important fundamental in today’s housing market is the lack of houses for sale. This shortage has been identified as an important barrier to young adults buying their first homes.”
If you are one of the many seniors who desires to retire in the same area you’ve always lived, you’re not alone. Will your current house fit your needs throughout retirement? If you have any questions about demand for your house, let’s get together to discuss the opportunities available today!
If you are a Millennial looking to become a home owner, make sure you have an agent on your side with the experience, knowledge and most important, your goals in mind. Text, email, or call me today for a free buyer consultation.
Current Available Listings