When it comes to real estate, you need to be targeting the right sellers and buyers. Usually the sellers and the buyers are not just on opposite sides of the table, they’re on opposite sides of the generation, as in the case of Baby Boomers, Millennials and Gen Z’s.
Due to the present increase in mortgage rates, buyers have to be very selective when it comes to making an offer on a property. They not only have to be able to justify the price to the mortgage company, but they are going to need to be able to cover the monthly nut that occurs after the purchase as well as the cost to the transaction, meaning closing costs. According to a recent report and survey, Millennials only accounted for 26% of the first-time buyers, which is a significant decrease from the 34% they had garnered in 2022.
Gen X buyers, ages 43 to 57, accounted for 24% of the buyers in the market, while the Gen Z buyers, represented by ages 18 to 23, comprise just 4% of the total buying market.
With the pandemic, and the shifts in economic supply chains, Millennials seem to be moving around more than other generations. This is for them to move from larger homes or to relocate. It seems that Millennials on average remained in their homes for just 4 years, while Baby Boomers would remain in their homes for an average of 16 years.
In addition to the trajectory of home prices over the last 3 years, and the rise in the mortgage rates, the cost of living has become so inclement for first-time buyers that they are having a difficult time being able to manage their own personal budgets. Part of the issue in terms of putting down a reasonable down payment is how rents have skyrocketed over the last 3 years.
The high rents, the inflation and the cost of living have made this market more favorable to Baby Boomers, who now represent 39% of all buyers in the market, which is up from 29% a year ago.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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