No big bad wolf will be able to huff and puff homeowners out of their home.
People are committing to staying in their homes for a longer period of time – meaning most are opting to age in place.
The result has been causing a dramatic shift in the housing market. The National Association of Realtors released their 2017 Generational Trends Report and shared that Millennials were the largest share of homebuyers at 34% with 66% being first-time owners. Although Millennials are buying homes at a slower rate than past generations, they’re still very interested in owning a home.
After the recession, most homeowners have been hesitant to move after locking down their current mortgage rate. According to Freddie Mac, sellers on average are living in their home for 10 years or more before selling – a rise in 5 years since the early 2000s.
Since 2014, this gap has only continued to grow. It seems as though most homeowners are deciding to renovate their homes rather than purchasing a newer one.
What does this mean – New home construction slows and house prices continue to rise for starter homes. Repeat buyers are seeing a rebound in equity – which is usually a good thing – but it seems to be hurting the younger generations who are desperately wanting to own.