By Penny McLaughlin
Our phenomenon happening right now is related to both older folks and Millennials. The trend is for Seniors to stay put and not sell the family home. This creates a challenge as more and more Millennials look to enter the housing market. This trend adds to the housing inventory supply being shorted, creating less supply for the younger folks to have to choose from. In the end, it tends to keep prices high.
The Millennials coming of age is a huge number, something in line with the number of post-World War II baby boomers that were introduced to the market many years ago. This creates a secondary situation that keeps rents at all time high as many younger people can’t afford or can’t find the right home to buy. They rent instead in mass numbers keeping the rental market healthy. Freddie Mac estimates that the national market is short about 2.5 million inventory homes right now.
Homeownership is down about 8% for the generation coming into the market. Much of that is due to delayed marriage, student loan debt and a higher cost of Urban living that attracts a young generation. Still, as the Millennials come into age with marriage and children, those dreams of home ownership become more diluted with the inventory being short. In the middle of all this is the desire for Seniors to be closer to their children, the children are moving to urban cities, all of which is great news for the greater Seattle / Kitsap county area as more and more Millennials want to be here as the downtown area explodes with vibrance.
All in all, I think it’s going to be a great year in the real estate market. As always contact me for any help, information or research you may need.
Have a great day and better tomorrow.
Penny & Team @ John L Scott
Serving: Bainbridge Is., Poulsbo, Kingston, Silverdale, Bremerton, Port Orchard & Port Ludlow