We have all heard of “Generation X” and “Baby Boomers” but what about “Echo Boomers.” Between the demographic age of 17 and 31, there are sixty-two million echo boomers in the United States who between them are expected to shape the housing market in the coming years not only in California Real Estate but on a National level as well.
Recent polls show a strong desire among the younger generation for home ownership and with around 5 million of these echo boomers, turning 21 every year, they will definitely be a force to be reckoned with in the coming housing cycle. However, home ownership will not be a fate accompli as high student loan debt and unemployment will curb the ability for loan qualification which will throw the focus back on the economy. If job creation starts to rise and unemployment, therefore falls, home ownership, which is a key element in America’s social fabric, will continue to rise.
In California Real Estate we have already seen some marked improvement(s) in the housing sector with a shortage of homes in “ready to move in ” condition which is starting to create multiple bids on those properties as buyer’s clamor to take advantage of record-low interest rates. Across the country, there has been a marked decline in inventories for sale with some California metro areas seeing over 40% reductions as well as in certain Florida, Arizona and Washington metro cities as well.
The sense of urgency being felt by buyers is a result of the combined effect of low-interest rates, low inventory levels, investors buying up bank-owned properties at bargain rates, new construction at cautious levels and sellers waiting to see if prices will bounce back before listing for sale. The net result is more buyers ready to buy but fewer homes available which is generating a solidification in prices and in some instances multiple bids on properties.
Stay logged in and check for more market updates from Santa Barbara and around the Nation or contact Cristal directly at cristal@montecito-estate.com