- It seems that millennials and boomers will move real estate markets. These two large generations will be approaching life events that motivate people to buy homes: marriage, children, retirement and becoming empty-nesters. Some predict that millennials will make up 33% of buyers in 2017, lower than an original estimate due to increasing interest rates.
- Millennials will look to the Midwest as it has affordable cities. Many of these Midwest cities have seasonal travelers who come to Naples, FL so that is good for SWFL! They will be able to afford to travel here.
- Price appreciation will slow down about 1%. The prices will still likely go up as long as the supply of listed homes remain tight.
- Fewer homes mean fast-moving markets
- The West will lead the way by increasing sales and prices in real estate. Other leaders in the market will be California, Arizona, and Oregon.
We’ve already seen interest rates jump this year, and that is a movement that is likely to affect the youngest generation of home buyers. It seems that we may be saying goodbye to the lowest interest rates of the past few years. That’s significant for millennials, which means more may be renting because it’s more cost-effective, but only by a little bit.
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