Spring Into Action: What is Affecting the Housing Market Now?

It's mid-April, spring is finally here, and economic unrest is on the minds of many.

How do we spring into action when there are so many factors affecting the housing market and our lives in general? Let's explore!

• Baby Boomer Sellers - Those born between 1946 and 1964, live in 46 million owner-occupied homes with a total combined value of $13.5 trillion, according to research. These sellers are finding it challenging to make a decision to move. The question being "Where do I go?" This problem has contributed to the shortage of inventory. They are also competing with millennials who are purchasing a home for the first time. These homes are often smaller and less costly therefore desirable to both groups.
• Millennial Buyers -  4.8 million millennials turned 30 in 2021 and the desire for homeownership is peaking for this group.
• The Great Resignation - Many people are reconsidering their jobs with a fresh perspective and they are quitting due to the unsettling nature of the pandemic, Also called The Great Rethink causing the examination of a company's culture and opportunities. This is reported by Harvard Business Review in a March 2022 article. A more purpose driven life and meaningful work is the catalyst.
• The Great Reshuffle - This term is synonymous with the Great Resignation and describes workers being strategic about their careers/employment. Remote work, flexible work hours, 4 day work weeks and more freedom  are trends that will continue to disrupt the traditional idea of a job/career.  Employers are developing ways to incentivize their employees.
• Inflation Mindset - Supply and demand issues persist, prices are increasing in almost every sector of the economy, and 8.5% inflation is the highest in 40 years!
• Political Milestones - The first Black woman, Ketanji Brown Jackson,  will serve on the nation's highest court. Never in 233 years has this happened, this decision is immensely important to the advancement of women and people of color. Positive news helps with general morale.
• War in Ukraine -  It is unsettling to think that a war of this nature is happening. Supply chains are disrupted which greatly affects the housing industry. Sadness and heartbreak for this nation brings concern about US involvement and what the future may bring.
• Homebuyer Obstacles - Affordability is the #1 reason plaguing homebuyers followed by discrimination, mortgage access and agent performance according to the National Association of Realtors (NAR) latest consumer survey. Measures are being taken to reduce these barriers by NAR so that the economy can thrive.

Real Estate is a very noisy environment and in order to cut through the fog, home sellers and buyers need a reliable advocate on their side. A trusted advisor to interpret data and explain the market and the process. Great resources are needed to advocate for clients.

Bottom line is that we have many options when it comes to our lifestyle and life/work balance. Sparking joy in your life is a priority! There is a surge in entrepreneurship with 5.4 million applications submitted in 2021, this trend will continue as people have the time and resources to reconsider their purposeful life.

If you are considering selling or buying in 2022 our team has the time to listen, the resources to share and the skills/talent to assist in the home selling or home buying process.

If you like what you are hearing in this blog please contact Elisa, Team Leader with The Café Residential Team at McGrath Realty Inc and 35 year residential expert. We specialize in a delivering an educational and stress-free real estate experience.

914-912-1355 call/text or [email protected]