Just as baby boomers are hitting retirement, more millennials are reaching peak first-time homebuyer age, and they’re all competing in a market starved for inventory.
They not only need to save enough for a down payment — which has gotten harder over the past few years — but may need to win a competitive offer against a repeat buyer armed with equity from a previous home purchase.
And as rents continue to rise, and mortgage rates remain low, it’s likely that those who have the means for a down payment will choose to buy instead of rent, adding to the demand and keeping prices rising.
This newfound ability to live anywhere and a desire for more space has prompted many moves to homes farther away from city centers, whether that’s to a far-flung suburb or a completely different area of the country.
As local economies continue to recover and people become more comfortable with in-person activities during the continuing pandemic, the lure of city amenities should attract more buyers.
They should be prepared with mortgage pre-approval and a solid list of features they can’t live with or live without so they can be decisive and move quickly when they find the right home.
The high demand and low inventory we’re seeing push prices higher aren’t going away anytime soon, but historically low interest rates might.