Baby Boomers are helping to improve the California Real Estate Market. How? Well, the median home price gain in California is predicted to slow to 5.2 percent for 2015. It was once predicted to hit an 11.8 percent increase vs. the 2014 calendar year. According to the California Association of Realtors, the median home price is forecast to increase to $478,700 by the end of 2015 from $455,000 in 2014. That’s still great news as it is a gain and not a loss. All this said, more homes are expected to be available on the market for purchase by potential owner/user consumers in 2015.
“The consistent rise in home equity has contributed to the strong gains in the 55 year old plus housing market,” according to Chief economist David Crowe for the National Association of Homebuilders (NHAB). Crowe explained that many consumers are now in a position where they can sell their homes at an acceptable price. Homebuilder confidence in the over 55 age group is now at its all time high since the NAHB began tracking this category 6 years ago. Further, the data I’m seeing shows that the baby boomers will undisputedly have a huge influence on the real estate market because of their sheer numbers. By 2030 there is expected to be more than 72 million Americans over the age of 65 which is almost twice the number of this age group as of 2007.
So, what does this mean for buyers? Well, they can still get a pretty great deal on property- especially with employment up and gas prices down. Combine this factor with the baby boomer surplus and its correlation to real estate…. the trend of non-investor home sale transactions is going to help the California market grow. Am I excited for this? Yes!
I’ve already started to see Northern California homes and rent prices incline thanks to Google and other tech businesses investing in American workers. As people enter and leave the workforce, it is going to create a level playing field for both the buyer and seller.
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