There is a massive wave of home buyers expected to hit the market soon. Where will they buy?
Many veteran real estate investors and market analysts are extremely bullish on the outlook. The National Association of Home Builders and Wells Fargo has reported that home buyers are more active and builders are expecting more sales over the next 6 months. Yet, this activity could easily be dwarfed by an even greater surge over the next few years.
80 Million Millennial Buyers
Via Inc. two experienced investors who managed to survive the last decade, and now have over $1.5B to invest, estimate that there are over 80 million millennials who could soon make the move to buy homes. The may buy personal residences, vacation homes, and investment properties. To put this in perspective; consider that a typical strong year in real estate sees just around 5 million properties changing hands.
80 Million Baby Boomer Buyers
In addition to millennials, there are also around 80 million boomers who could be moving soon too. Many are going to be downsizing their homes, or could relocate closer to healthcare and activities. This shift should open up available inventory levels, and boost overall demand and sales volume.
The Multi-Billion Dollar Wealth Transfer
Financial experts have also recognized that we are entering one of the largest wealth transfer periods we’ve ever seen in history. Hundreds of billions of dollars are about to be passed down from boomers. So, even without a return to the easy days of subprime lending, and despite rising interest rates, Generation X could soon be armed with billions of dollars to purchase real estate. Many of these heirs lost homes in the 2008 mess, and could substantially add to new home buying activity.
There are rumors of the CFPB evaluating new ways to make it easier to get access to credit, like mortgages. Millions are experiencing rebounding credit as they heal from last decade’s crises. Together with the massive home buying groups listed above, we may see an unprecedented bout of real estate sales and growth in the years ahead. However, with the need for profit, value, and affordability never more urgent, Michigan real estate continues to stand out as a top pick for home buyers and real estate investors, and could attract a great deal of new residents and capital.