- People are staying in their homes longer – in 2008, people bought and sold after staying in their homes an average of 6 years… in 2016 it was 10 years
- Renters are now buying, creating high demand – increasing rents and low interest rates mean it often makes more sense to buy than rent and renters are buying
- Investors are renting homes they bought during the recession – about half of the homes sold 2009-2012Â Â went to investors… although some of them were sold as flips many are being rented so are not turning over at a normal rate
- Homeowners are renting instead of selling – because of the strong rental market, many homeowners are keeping homes as investments and renting instead of selling when they buy another home
- Many Gen-Xers aren’t selling and buying up – many in this category who were ready to move up didn’t have enough equity to sell because of the recession so chose to remodel and stay where they are
- Baby Boomers are aging in place –Â many in this category aren’t downsizing as predicted but deciding to make renovations so they can age in place
- Fear of not finding a new home – many move up buyers and downsizing sellers are afraid to sell for fear of not finding a new home to buy
- New construction isn’t keeping up with demand – months supply of inventory is down in all price ranges, average down 16.7% compared to last year
- Millennials are now buying – this generation was slower to launch than previous generations but are now buying, increasing the pool of buyers
- Many homeowners lost equity during the recession – many homeowners were underwater on their mortgage during the recession and couldn’t sell so decided to stay and update/expand rather than move
