WHY ARE THERE SO FEW HOMES AVAILABLE?
The Colorado real estate market, like much of the rest of the country, is suffering from “fixed-in-place” syndrome. Translated, that means a serious lack of homes for sale. Specifically, the lower end of the marketplace, typically known as starter homes, is playing a dirge to many potential home buyers. While the secondary market or “move up” homes isn’t a funeral march, it also isn’t sounding anything like a Mardi Gras parade.
Fewer homes available for sale leads to rising prices and fierce competition among those seeking to purchase. So what do you need to do to make sure your dream home doesn’t stay a dream?
Understanding why inventory in the marketplace is so tight can help alleviate a lot of the frustration many are feeling about the atmosphere in this current market. It also helps in understanding what motivates the sellers that are putting homes up for sale. That information is invaluable in formulating your plan of attack to not just seek, but buy, the home you want.
WHY ISN’T ANYONE MOVING?
Recent surveys give us some insight into the real reasons many homeowners have decided to stay put and it's probably not what you'd expect. While statistically people move about every 5-7 years, the statistics didn’t account for the generation known as Baby Boomers. How is this people group affecting the real estate market?
A close look at the demographics of the responders to the survey reveals what may be the biggest factor. Younger homeowners, those under 55 in particular, admit they have plans to sell in the near future. However, the greater majority of home owners are those identified as Baby Boomers.
The survey reports that 85% of these Boomers, homeowners in the 55 – 74 year age range, said they had no plans to sell in the next year. This isn't that odd a percentage on its own, since this is typical for this age range. No, the problem presents itself in that the overall population of that age range is one of the largest of the home owning age groups.
That means, there are quite a few more homeowners who aren't that likely to put their homes up for sale. Does this mean your home buying plans need to be put on hold?
NOW THE GOOD NEWS!
All that said, the low mortgage interest rates are making home ownership far more affordable than just a few years ago. With 60% of millennial home owners indicating were hoping to sell within the next year and home builders working hard to provide new inventory to choose from, this coming year should be a very good market for interested first-time buyers.
Preparing to buy your first home doesn’t have to be a difficult chore, especially when you get the best tips and ideas from your local RE/MAX Alliance Associate to assist you in getting ready!