So Long, Sunbelt

Older Baby Boomers (aged 55-64) are not just prolonging retirement plans. They are also changing their housing preferences. Boomers who can afford to moving are choosing to go closer to children and grandchildren instead of heading south for the Sunbelt. A recent survey conducted by real estate advisory firm, RCLCO, found 75% of boomers were interested in mixed-age and mixed-use communities. Walkable, suburban town centers seem to be a popular solution for these Boomers.

It will be interesting to see how this trend plays out over the next decade. Could this create an increase in time spent with family? With greater economic strain placed on parents, perhaps they will lean on grandparents to take care of the kids? This could also be good news for Pennsylvania, which has witnessed a great deal of residents leaving the "Ironbelt" for the "Sunbelt" over the last two decades.

Other interesting generational trends:

• Younger Boomers (46-54) are feeling "stuck" in their homes due to flat incomes, lost home equity, and children moving back home. This segment is the largest, which means less younger homebuyers are available to "move up" into these larger homes. Instead, these homes might become an attractive option for immigrant families, who are seeking larger homes for their larger household.
• Generation Y (teens-early 30s) are an emerging force in the home market. This segment of the population values community above all. However, this generation is much more unpredictable than others. It will be interesting to see the behavior of this segment unfold over the next decade.

Good News in the Housing Market

Good News! New home sales were up 14.8% in April, and 50% higher from April the previous year. New jobs are being created, which is also expected to raise demand for housing.

Some economists remain a bit skeptical, citing the high volume of homes currently on the market as a hindrance to recovery. However, the House recently passed an extension in the federal homebuyer's tax credit, which could stimulate demand if it is passed by the Senate. Interest rates are still at record-low rates, which is another great incentive to buy real estate.

We have been seeing a higher level of activity this month, with plenty of settlements and new listings to keep us busy. However, we love to hear good news about the housing market, and look forward to an economic recovery!