By: Jocelyn Russo of the Jocelyn Russo Group of Coldwell Banker
As we enter 2019, many news outlets and housing experts warn that the housing market may slow down creating uncertainty regarding the real estate market. Over the past few years, the inventory of homes for sale have been near historic lows, which has been the force behind increasing home prices. This has been excellent news for sellers profits as many of them have been able to capitalize on the demand in the market and sell their homes quickly.
One of the major reasons why inventory has remained so low for so long is that an entire generation of home buyers is finally buying! The millennial generation (ages 19-35) have been the driving force behind bidding wars in many areas of New Jersey as they ditch their renter lifestyles, move out of their parent’s houses, and put down roots in new communities. “…As more millennials age into their early-to-mid thirties, and begin to get married, have children and form households, they will continue to be the primary drivers of homeownership demand.” First American recently released a study entitled “How ‘Renter’ Millennials Will Transform the Housing Market.”
With the strength behind millennials motivation to buy a home, it is safe to say that one aspect of 2019’s housing market that WILL NOT slow down is the demand for housing from young renters who are no longer satisfied living in someone else’s homes. In fact, “according to Census Bureau and First American calculations, over the next 10 years, aging millennials are expected to purchase at least 10 million new homes. By 2060, it is estimated millennials will have produced more than 20 million first-time home buyers.”
The real estate market is shifting to a more normal market, not a slow down! Though mortgage requirements have loosened somewhat during the last few years, we are nowhere near the standards that helped create the housing crisis ten years ago. A normal real estate market is healthy for both buyers and sellers, which gives great opportunity for both to thrive.
If you are a homeowner who is nervous that the demand for your home will slow, don’t worry! If your home is priced competitively, there will be demand for years to come as this generation of renters is finally able to buy!
– Your Realtor, Jocelyn Russo of the Jocelyn Russo Group of Coldwell Banker