Typically, many families back off their pursuit in purchasing a home as August ends. Similarly, fewer homeowners enter the fray and many unsuccessful sellers pull their homes off the market. With the kids back in school, the timing just is not the best for families. Moving can be disruptive while the kids are focusing on their education. But 2020 isn’t a normal year.
What should have been the Spring Market, March through May, turned into one of the slowest springs in memory. As the real estate industry adapted and the shock of Coronavirus waned, housing surged. The Summer Market became the Spring Market. It appears as if the Autumn Market is going to be the Summer Market in 2020, not quite as hot as June, July, and August, but still quite busy with homes flying off the market and generating multiple offers. All signs point to an extraordinary September, October, and first half of November. The August active listing inventory is at an all-time low, and current demand is at its highest level since 2012.
It’s one thing to read about how strong the current housing market is but I can assure you, it is a swirling host of emotions to experience it as a Realtor. In my 13 years of working in this industry, I have never seen this level of housing competition. As soon as properties are listed, my phone starts ringing with showing requests, my email is full of aggressive offers, and then more sellers decide to jump into this unprecedented market. I’m not complaining – I know this pandemic has created harsh conditions for so many but I never could have imagined how my life would be impacted and being able to help so many. I see a vacation in the near future!
Millennials have surpassed Baby Boomers as the largest living adult generation. The demographics are lining up that favor an increase in home buyer demand. More and more Millennials (ages 23 to 38) are reaching the average first time home buyers age of 32-years old. Millennials number 72.1 million, exceeding both Baby Boomers (ages 55 to 73) at 71.6 million and Generations X (ages 39 to 54) at 65.2 million. That means that housing is heading into a strong demographic patch of first-time home buyers, one that has not been seen since the Baby Boomers were in their prime 30-years ago. A stronger supply of first-time buyers means increased demand for years to come.