As more Millennials become home buyers, they are finding that options can be very limited for starter homes, and one of the reasons for this, according to a recent Chicago Tribune story.
A Freddie Mac analysis estimated that Boomers opting to “age in place” rather than downsize are keeping about 1.6 million homes off the market. Another study showed that older homeowners have overtaken middle-aged ones to become the primary source of home improvement spending.
Part of the reason for this is people are living longer, so someone in their late 50s isn’t necessarily ready to move to a retirement community. They instead opt to renovate their existing home to meet their current needs.
While this is great news for the construction industry, it creates challenges for real estate professionals, with most areas in a strong Seller’s market. Low inventory means buyers have to move fast and be prepared to compete for homes & often pay list price (or more).
Here in Mecklenburg County, we’re seeing this very clearly with fewer than 5 months inventory of homes under $400k! In most markets, there’s a “magic number” where inventory jumps upward, and here, that number is well north of $750k. THAT, my friends, is a seller’s market.