As the population ages, the preference for home-style changes.
Millions of Baby Boomers and Empty Nesters are looking to downsize from their colonial-style two-story homes into more practical single level first-floor master ranch or Cape Cod style homes. This trend has been impacting buying and pricing patterns, with ranch homes increasing in value due to rising demand.
As Baby Boomers downsize, more and more Millennials are entering the market as first-time homebuyers. This is due, in part, to a shifting market. Increasing inventory and homes sitting on the market for prolonged periods indicates that we are phasing out of a seven-year-long strong seller’s market, to a more balanced market that is restoring some power to buyers. Millennials are also finding home buying more affordable than renting with relatively low-interest rates and a strong job’s market.
Even though there is more supply than demand, that doesn’t mean that there isn’t flexibility in the housing market. The need for reasonably priced homes in good areas is always a sure bet, hence “Location, Location, Location”. There will always be pockets of neighborhoods where good schools, access to major expressways and family-friendly communities are always going to be listed at a premium.
Furthermore, ranch-style homes priced under $500,000 with close access to amenities are increasingly popular with an aging population and downsizers. The safest bet in this changing market are homes that are priced competitively and have updated finishes and features throughout.
No home is completely market-proof. But with the right real estate agency, you can position yourself above the shift, ensuring your investment is protected. A good real estate agent will keep you up-to-date on the market, the economic effects, the financial risks and gains, as well as, on and off-market opportunities.