by Greg Abbott
Boomers: Sales of homes to the 55+ age group are expected to experience strong growth in 2015. Bloomberg.com reports, “With new-home sales running well below historic levels, older Americans who have had decades to build wealth and credit histories are helping to prop up demand while younger people put off homeownership.”
Many builders are well-positioned to appeal to the giant population of buyers that is not only getting bigger, but are feeling better about the housing market. In Washington State the number of 55+ active communities continues to grow. There are a lot of healthy boomers choosing down-sizing options for the easier upkeep, accessibility features and country-club-like ambiance. Puget Sound Business Journal reports that pent-up demand and sheer numbers of boomers are contributing to the growth.
Millennials Marking Time: Student debt and and tight credit has had an effect on the millennial market .”There are about 74.7 million millennials — those age 18 to 34 — compared with with 75.2 million people in the baby-boom generation born from 1946 to 1964, according to Census data. While the baby boomers are greater in number, they cover two more years, said Jed Kolko, chief economist at Trulia Inc. The most common age in the U.S. is 23, he said.” (Bloomberg News)
Though millennials are more price focussed than boomers, the 55+ group has a downsizing mindset with a willingness to invest in upgrades and premium choices on new construction homes. This appeals to builders.
Our Projection for 2015: With the whispers of higher interest rates coming mid 2015, those watching the economic news will be encouraged to make their buying and selling decisions early. Our area market typically sees it’s greatest activity from February thru late May. We’re predicting a very active first and second quarter.
Greg Abbott is a broker for Windermere Real Estate in Bellevue, WA, located on Greater Seattle’s Eastside. He has spent 25+ years helping area residents buy and sell real estate. Greg’s aim is to insure that each transaction is a smooth and seamless process. Whether working with first-time buyers or seasoned sellers he’s committed to knowledgeable, outstanding service.
Windermere Real Estate | Bellevue, Wa
Greg Abbott | Broker | 425.466.8786 | firstname.lastname@example.org