Will the different generations of home buyers get what they want during the changing real estate market trends? Homebuyers are welcoming in a positive shift because more houses are becoming available for sale with even more coming before the end of 2021. The extra supply of homes for sale is slowing the still-rising prices of homes across the country. The median home price in June 2021 was up 12.7% --down from 15.2% in May 2021.
The measure of median home prices over the last year have been skewed because most of the homes sold were in prices above $500,000 to over 1,000,000 dollars. Aspiring home buyers had to work harder to find homes in the lower price ranges. That trend is making a turnaround. More newly listed properties are smaller and less expensive compared to last year. Younger homebuyers have a better chance of snapping these homes up.
CoreLogic predicts that home prices will continue to rise into 2022 but at a much slower pace. Mortgage professionals and their customers expect mortgage rates to rise, especially if the Federal Reserve announces that they will pull back from buying the billions of dollars per month in mortgage-backed securities. On the other hand, if the Fed makes the tapering of bond-buying gradual and foreign and domestic investors make up some of the buying shortfalls, rates may coast along and stay enticingly low.
All of these trends are paving an easier road for home buyers and homeowners who want to take advantage of refinancing to lower their rate, shorten the term on their loan or pull cash out. If they are not buying a home, Baby Boomers and Generation X have been positively restructuring their finances by refinancing their mortgages. Millennials and Generation Y make up the biggest homebuying group. This group is celebrating the smaller, less expensive homes going up for sale.
Generations Buying Homes in 2021*
Generation Z (born after 1997) 2% homebuying market
Millennials mixed with some Generation Y (1981 to 1995) 37% of the homebuying market/ 22% of the home selling market
Generation X (born 1965-1980) 24% of the homebuying market/ 25% of the home selling market
Baby Boomers (born 1946-1964) 32% of the homebuying market/ 43% of the home selling market.
*National Association of REALTORS® Research Group- Homebuyers and Sellers Generational Trends Report
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