Ringing in the New Year with a new home? Yes, that is the case for many people this upcoming year.
The housing market continues to be on the rise as Americans have finally recovered from the 2008 recession. Renters are ready and confident to buy and own a home again in 2016. The driving force behind the recovering economy and the continued growth in the housing market is three key buyers: millennials, generation X’ers and baby boomers.
Millennials will once again make up the majority of home buyers this upcoming year. Millennials who are between the ages of 25 – 34 years old, currently make up 30 percent of the existing home market according to Kellie Parten, HomeSmart Realtor. These millennials are driven by income and stability and have matured to a point where they are ready to purchase a home as they invest in their futures. This large population of consumers will have a tremendous impact on the 2016 housing market as they look to purchase homes in urban city centers.
Generation X’ers, who are slightly older than millennials, accounted for 20 percent of the home purchases in 2015. These are the type of buyers who currently own a home or have owned a home previously. Many people in this population were directly affected by the recession and lost their homes. These boomerang buyers may be looking to upgrade to a more sophisticated neighborhood or they are financially stable to own a home once again. These buyers have rebounded from financial crisis and are entering their prime family raising and earning years.
The third largest population making up home buyers in 2016 is baby boomers. Baby boomers are looking to relocate, down size and purchase a smaller home again. They will be putting their family homes on the market and are looking to settle down in an effort to reduce their cost of living. This older generation is looking to purchase homes in places like Arizona and Southern California where they can find affordable and customizable living spaces.
Regardless if you do not fit into one of these categories, it may be a good idea to research the housing market to see if you can potentially upgrade or purchase a new home. A Valley HomeSmart realtor can help people find their perfect living space as 2016 is the ideal time to purchase if they are looking to make long term future housing plans.