Realtors: Demographics still crucial for housing market
Posted on Tuesday, November 11, 2014 at 7:55:50 AM
Who is currently in the market for a new home? Traditionally, this segment depends heavily on first-time homebuyers, millennials and other demographics in order to thrive, and recent opinions from Realtors indicated that this sentiment holds true.
At the 2014 Realtors Conference & Expo, hosted by the National Association of Realtors, industry experts shared their beliefs about the effects demographics have on the housing market. NAR reported that a lack of inventory, tight residential financing standards and weak wages have all kept millennials from the market, but that could change.
"It's not that young people don't want to purchase homes, it's that they are delaying the purchase," Lisa Sturtevant, vice president of research for the National Housing Conference, said at the NAR expo. "Many of the reasons millennials are not forming households or making purchases are economic, so as the economy improves, we should see this group become more of a force in the housing market."
In addition to demographics, the housing market is also feeling the effects of fluctuating residential financing rates. In an interview with the Dallas Morning News, NAR chief economist Lawrence Yun explained that rates will likely increase in 2015. However, he added that the potential for more favorable lending standards could prevent a decline in mortgage activity often associated with higher rates.