In the first quarter of 2019, US homeownership rate was at 64.2%. By Q1 of 2020, the figure rose to 65.3% with Q3 of the same year ending up with 67.4%. This reflects the demand of consumers to have their own homes. And, it may just well be that health and safety concerns are the main drivers. Remote working and the easing back to social life may also be a part of it.
The market also saw ultra-low mortgage rates and changes in housing preferences. This includes the demand for home offices, larger spaces, and outdoor amenities. These have driven the increase in the US.
Millennials, believe it or not, are dominating the residential real estate buyers market. Members of this generation have been finding stable jobs, with higher household incomes.. Most Millennials have been found to prefer middle- and upper-middle-class homes and account for 38% of the market.
On the other hand, leading sellers in 2020 were the Older Boomers (1946 to 1954) at 23%. Younger Boomers (1955 to 1964) and Gen Xers (1965 to 1979) came a close second making up 22% of the sellers.
In the US, many new homeowners during the pandemic claimed that COVID-19 played a role in pushing them to purchase homes. About 54% took advantage of the low mortgage rates. Another 15% stated that they wanted to move out of locations getting hit badly by the outbreak. Only 26% answered that the outbreak did not have an impact on them becoming a homeowner.
The trends presented here are expected to serve as a guide for both home sellers and buyers. And this is true, considering the fact that many fund managers and investors have redefined their investment strategies in response to developments in the market. If you are planning to purchase property, you can utilize the data from these real estate market trends to make sure that you get the most value from your real property purchase.