The U.S. housing market is on the verge of being inundated with homes for sale on a scale that hasn’t been seen since the housing bubble in the mid-2000s.
The tsunami is being driven by Baby Boomers leaving them. Four out of 10 U.S. homes are owned by folks, age 60 or older, and five out of 10 by residents 55 or older, according to Zillow. Over the next two decades, more than a quarter, or roughly 21 million homes, are likely to be vacated. During the last housing bubble there were only 450,000 new home sales per year, on average.
Although all of these homes will be hitting the market, they will be located in areas where most of the younger generations don’t want to live. The areas that will be impacted the most are traditional retirement communities, including Florida and Arizona. See the video from Fox Business here
According to the newly released Pending Home Sales Index by the National Association of Realtors, Pending Homes Sales jumped by 9.4% on a year-over-year basis in February.
Pending home sales rose in February, climbing for the second consecutive month, according to the National Association of Realtors®. Each of the four major regions saw an increase in month-over-month contract activity, as well as growth in year-over-year pending home sales transactions compared to one year ago. The Pending Home Sales Index (PHSI), is a forward-looking indicator based on contract signings, grew 2.4% to 111.5 in February. Year-over-year contract signings increased 9.4%. An index of 100 is equal to the level of contract activity in 2001.
Apartment List, a rental property search engine, has opened a window into the nation’s mobility dreams, as people browse for new apartments in far-flung cities or neighboring towns. This week, the company released a new analysis of where it sees renters hoping to move, based on their search habits over the second half of 2019. Better (or comparable) jobs and more affordable living seemed to be prime motivators for making a switch.
There are no mentions of any local cities in the Midwest in this article. Does that make us more stable? Read more here.