First time buyers seem to be making a comeback, according to ERA Real Estate’s recently conducted broker’s survey report, which gathered information around what trends industry professionals are seeing in their current housing market.
“Looking at industry forecasts, I believe the economy will continue steady progress forward and housing will play an important role,” says Charlie Young, CEO of ERA Real Estate. “Our ERA brokers across the country are telling us that first time home buyers are making a comeback, the move-up market is being fueled by recent price appreciation and, while still challenged, new construction is beginning to increase to meet demand.”
The trends recorded in ERA’s survey provide strong indicators of what we can expect to see driving the industry in 2016. They include:
1. ERA professionals reported seeing an increase in popularity of 55+ communities, as more and more Boomers want to downsize without sacrificing their active lifestyles or proximity to family and friends. By 2019, nearly 45 percent of US households will be headed by someone at least 55+, creating a niche market for brokers and agents to tap into.
“When thinking about baby boomers, it’s important to understand that they may be willing to relocate, but they are not willing to sacrifice their active lifestyles or proximity to family and friends,” says Young. “Also, don’t assume they are downsizing. Many choose homes of similar size and price but that offer more of lifestyle offerings.”
2. Across the country, ERA is seeing new construction and specific interest in land purchases in a variety of markets including Florida, California, Utah, Georgia and New York. The increased confidence in land buying is accompanied by increased confidence in commercial lending – which marks a brighter 2015 economically and potential for 2016, as well.
“New home starts are on the rise thanks to loosening of lending for developers,” says Young. “However, new home starts are not keeping up with demand, so increased land purchases may be related to private custom home builds.”
3. ERA agents report first-time homebuyers are making a comeback in their markets. Due to home values increasing, more entry-level inventory is being created as move-up buyers make their next move. The influx in new construction is also increasing inventory, too.
For more information, visit www.era.com.