According to the National Association of Realtors® recent release of Home Buyers and Sellers Generational Trends Report, there are some interesting and fun facts about our real estate transactions.
Definitions of different types of generations:
Silent Generation - born between 1928-1945
Baby Boomers - born between 1946 and 1964
Generation X (aka GenX) - born between 1965 and 1980
Millennials (aka GenY) - born between 1981 and 1996
Generation Z (aka GenZ) - born between 1997 and 2012
Generation Alpha (aka GenA) - born between 2013 and mid 2020’s
● Millennials made up the largest share of home buyers at 43 percent; Boomers made up the largest share of home sellers at 42 percent; Gen Z made up 2 percent of each. It is now more likely for an older Millennial to be a first-time seller than a first-time buyer.
● Gen X had the highest incomes (it also had the highest share of married couples, thus more dual income), and bought the most expensive and second-largest homes; they were also the most likely to purchase multi-generational homes.
● Gen X were the most racially/ethnically diverse group: 23 percent identify as a race other than White; younger Millennials least likely to identify as heterosexual: 9 percent identified with another orientation.
● Millennials were the most educated: 90 percent of younger Millennials had at least an associate degree.
● Boomers moved furthest distances, primarily to be closer to family and friends, and were more likely to downsize.
● Young millennials use tech but are the most likely to use an agent in the purchase process and most likely to use an agent to sell their home.
● The silent generation were the most likely to move to be closer to family and purchased the smallest homes; they also had the highest percentage of military veterans.
● Gen X and younger Boomers delayed their home purchase the longest (5 years) due to debt.
According to Lawrence Yun, Chief Economist for NAR on Jan. 6, 2023, there are more Americans working today than at any other time in history due to 223,000 net new jobs in the past month, 4.5 million in the past year, 11.2 million in the past two years, and 23.2 million since the low point during the economic lockdown in April 2020. The unemployment rate is at a historic low of 3.5 percent. Wage growth over the past 12 months was 4.6 percent.
Job additions will be critical in generating fresh housing demand as mortgage rates show signs of stabilization. Housing affordability remains a challenge for those renters considering buying a home. More homes, therefore, need to be built to ensure more supply and lessen the upward pressure on home prices and apartment rents. This will also help tame the overall consumer price inflation, permitting the Federal Reserve to stop raising interest rates and possibly lower its short-term fed funds rate before the year ends.
Here are the nuts and bolts for 2023. We will continue to experience a slight decrease in sales and a slight increase in price. If you are a buyer on the fence, you should buy. Get into a property before the prices continue to rise. You can refinance to a lower interest rate, when they come down. Build your equity now. As a seller, you are poised to continue to see an increase of buyers while we are in a slower winter market. We will start to see an increase of inventory during the spring market which will create competition with other homes on the market.
As I have said before, please call a local REALTOR for all your real estate needs no matter how big or small. We are trained professionals here to make your life easier. It's best to surround yourself with the right team of professionals that can continuously give you the right advice for all your circumstances. <
Lisa DiBiase is the Broker/Owner for Landing Real Estate. She and her company represent buyers and sellers in the Greater Portland area. For all your real estate needs contact lisa@landinghomesmaine.com
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