Low housing inventory here in the state of Washington and across the nation is causing an increase in homes prices. Baby boomers, the large demographic born between the mid-1940s and the mid-1960s, may be a big contributor to the problem.
That’s because many are making the decision to stay in their family homes, rather than downsize. That lessens the supply of homes for households who want to move up to a larger home, thus leaving little for first-time homebuyers and a lack of movement on any rung of the housing ladder.
The recent article on CNBC.com “Housing recovery suffers, but don’t blame the millennials” by Diana Olnick explains a few of the reasons boomers aren’t moving. For the most part, with soaring prices it is just “cheaper to stay put.” And, boomers can’t find what they are looking for. According to a Freddie Mac survey, about one-third of this large group of boomers intend to age in place. That means they will likely be remodeling their current home.
A story published this spring on APNews.com by Joyce Rosenberg, “If you build it, they’ll stay: boomers remodel their homes”, reported that Harvard University’s Joint Center for Housing Studies predicted “home improvement spending by homeowners 65 and older will account for nearly a third of the total amount of remodeling dollars by 2025, more than twice the portion that group spent in 1995-2005. Owners age 55 and over already account for just over half of all home improvement spending.”
The housing market has cooled because of a shortage of homes and the resulting higher prices. And, adding to the scarcity of homes on the market, some homeowners—many of whom are the 55 and older group that owns more than half of the owner-occupied homes in the US—are remodeling their houses rather down-sizing or moving up.
It may make searching for the home you want a bit tougher, but not impossible.
Over more than two decades, I have helped hundreds of clients find just the right home or sell their current one. Through the lows and highs of housing market cycles and the ups and downs of home prices and inventory, you need the skill and expertise of a trusted advisor to successfully purchase or sell your home.
Just give me call at: (360) 701-4223 or email at Cyndi.Nelson2@gmail.com