Existing Homes Catch the Eye of First-Time Home Buyers in 2020
The market looks promising for those who want to sell their existing homes. The high demand for a resale stems from the lack of new home inventory. The latest Housing Trends Report from the National Association of Home Builders found that first-time buyers grew from 58% in Q4 2018 to 63% in Q4 2019.
During the study, the National Association of Home Builders gathered data measuring the share of consumers planning to purchase a home over the next 12 months. It revealed that 19% of Millennials were expected to purchase a home within a year, 13% of Gen Z will purchase a home and 12% of Gen X will purchase a home within a year. First-time home buyers make up 88% of Gen Z buyers and 78% of Millennial buyers.
As seen in the data, there is a high demand from first-time homebuyers. The shortage of new home inventory pushes consumers to look at existing homes. Many Millennial buyers have voiced that charm and character in an existing home are more important to them than a new construction house. The study reveals that 40% of the younger generations are interested in purchasing an existing home while only 19% showed interest in purchasing a newly-built home. Of the remaining 41%, they would purchase either a new or existing home.
If you are looking to sell your home, now is the time. Showing activity is up among buyers and more new construction homes will be coming on the market over time. Currently, with new home inventory low, existing homes are a hot commodity. Existing homeowners who have been thinking about a change, whether moving up or downsizing into a new home, now is the time to find a home that better fits your current needs.
Right now the mortgage rates are low and there is a high demand for existing homes. If you are in the market or are looking to put your current home on the market, reach out to a local real estate professional who can assist you with the sale or purchase of a new home.
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