Generation X Makes Comeback into Real Estate Market
According to a recently released study by the National Association of Realtors (NAR), Homeowners in the Gen X Generation are making a comeback into the Real Estate Buyer/Seller pool. In recent years, the time spent in their present home was 10 years, a cycle that was interrupted by the decline of house prices experienced in 2011. This decline has caused a definite decrease in inventory which hopefully will ease as this generation once again gains momentum in the Real Estate Market. A stronger job market and a rise in home prices is stated as the reason for this activity. It has taken this long for Gen X to rebuild their equity in their present home. Always in the forefront, Gen X has taken a backseat to Millennials in recent years. According to the Survey, the Gen X homebuyers grew to 28%, the largest percentage since 2014. They, however, are still behind the Millennial Homebuyers, at 34% and the share of Baby Boomer Homebuyers, at 30%.
The job market its somewhat healthy for College educated young adults but there are several other factors affecting their entry into the home owners market. Student loans for Generation X as well as Millennials is a real problem today. I read an article the other day about 'What millennials should know about student loans. ' The article went on to say that if one more article or person called their Generation Lazy they wanted to go on record to explain their current dilemma. They trusted the system enough to borrow for their future and here they were paying for years for an education that gave them only entry-level salaries prohibiting them from buying a home or starting a family as many are ready to do. This trend definitely warrants talking to a Financial Planner at the beginning of their College Tenure and knowing the facts and figures of their chosen professions. " Is it possible to get out from under that student debt? How long will it take if I stop after graduation? or enroll in Post Graduate education?' These are important questions to have answered before they borrow!
Young people today have a lot of difficult choices to make very early on, most only 18 years of age. Unfortunately, if you read about our young people, and I stress that it is our generations fault as much as their, most are really not ready or mature enough for a lot of the choices they face. They have grown up in a different world than the Baby Boomers. They see the world differently and we have made it relatively easy for them. Suddenly, there they are, in the grown up world having to make choices that will effect the rest of their lives. The sad reality is that they are not ready.
For a Real Estate Professional, it is vital to understand these Generations. Millennial Buyers at 85% are the most likely generation to view their home purchase as a good investment and this is good for the Industry. Another strong statistic is the increasing need for a Real Estate Professional. 90% of those surveyed used a Real Estate Professional to buy or sell a home, 92% if millennial homebuyers, 90% of Millennial Sellers, 88% of Gen X homebuyers and 89% of Gen X Sellers.
Call me, Wayne Liddy, your Real Estate Professional since 1986 at 519-436-4810 Royal LePage Peifer Realty Inc. Brokerage, Chatham-Kent, today and let me help you make the right decision!