While historically the homebuying season reaches a peak towards the last quarter of the year, 2020 has proven to be a remarkable exception. A continuously growing number of people are in search of acquiring a home, and the spike has not shown signs of withering down. And amongst the seeking homebuyers, experts have observed a distinct increase in Gen Z’s and Millennials shopping for homes.
The National Association of Home Builders (NAHB) revealed in their latest Housing Trends Report that the share of Gen Z’s and Millennials searching for homes has increased in comparison to the third quarter of 2019.
They stated that “Between the third quarters of 2019 and 2020, the share of Gen Z adults planning a home purchase rose three points to 14%. Millennials, however, are the generation most likely to be considering buying a home (22%).”
The NAHB also observed that over 80% of Gen Z potential homebuyers are first-timers, compared to 64% of Millennials.
Offering an explanation for the recent increase in home buying activity in the younger generations, Chief Economist for First American, Mark Fleming, explains that they are growing into their prime “home-buying years”
Mark stated that “Record low mortgage rates and millennials continuing to age into their prime home-buying years has boosted demand…”
Record low mortgage rates also play a fundamental role in the increase in homebuyers in general as it allows for more purchasing power in the community.
Chief Economist for the National Association of Realtors (NAR), Lawrence Yun, provides insight into this circumstance.
“Home sales traditionally taper off toward the end of the year, but in September they surged beyond what we normally see during this season…I would attribute this jump to record-low interest rates and an abundance of buyers in the marketplace, including buyers of vacation homes given the greater flexibility to work from home.”
However, as more buyers enter the market, competition in acquiring homes also increases. This in addition to a noticeable lack of housing supply may cause aspiring homebuyers difficulties in finding a suitable property for their needs.
As Mark Fleming says “a lack of housing supply remains a challenge.” And Lawrence Yun adds “There is no shortage of hopeful, potential buyers, but inventory is historically low.”
Due to the decrease in mortgage rates, now is an ideal time for homebuyers to acquire a property, especially amongst the younger generations. Likewise, it is also an ideal time for realtors, as buyers and sellers are continuously seeking the guidance and assistance of trusted professionals in their pursuit to buy or sell a home.
We, at Title Partners of Florida, write and support the real estate transaction closing, including the issuance of title insurance policies through Attorneys’ Title Insurance Fund. We also coordinate searches, title products, and a variety of other services for our clients. Contact us with any questions about our real estate closing services by phone at (844) 321-6168 or by email at email@example.com.