Regardless of where you live, experts are expecting that Baby Boomers will have a major impact on the local housing market.
That’s because this sizable portion of the population is comprised of 76.4 million individuals. And many of them are expected to make major moves over the next several years as they continue to retire.
To that effect, we wanted to share with you the top 5 Baby Boomer real estate trends to watch for in the coming months and years.
The Top 5 Real Estate Trends for Baby Boomers
Although many Baby Boomers plan to move to the Sunbelt when they retire, others may be motivated by different factors.
It’s always a good sign for the national housing market when sales activity is better than even the experts predicted!
And that’s exactly what happened recently when the latest market activity report was released by the National Association of Realtors in July.
Evidently, contracts to purchase previously-owned properties increased more than expected during the month of July, signaling that there truly is renewed momentum on the national housing market.
Let’s Take a Closer Look at The Numbers
According to a report from the National Association of Realtors, the pending home sales index increased 3.3 percent after a 1.3 percent decrease during the month of June.
That increase is much higher than previously expected. In fact, the median projection according to a Bloomberg survey of economists called for the index to increase about 0.5 percent. Specifically, estimates from 37 economists ranged from a decrease of 0.5 percent to an increase of 3 percent.
So why did the number of home sales do significantly better than previously predicted?
Experts credit the increase to a lot of factors, including:
- Increased hiring
- Rising property values
- Historically low interest rates
Not only are these factors increasing home sales but they’re also encouraging builders to break more ground.
Other factors encouraging a more robust housing market include a gross domestic product that grew at a 4.2 percent pace during the second quarter as well as the fact that unemployment claims decreased to 298,000 last week.
Experts add that faster wage growth as well as easier access to credit would also help boost the local economy.