Virginia Housing Trends and Generation Y Factor

VHDA just published a market trends about how a projected shift in Virginia’s population demographics may mold the housing market in the near future:

Click here to view the full report (1 MB PDF download)

The major information I want to point out is a demographic shift that is estimated between now and 2020.  According to the report, there will be a surge in the first time homebuyers (less than 35 years of age) and empty nesters (ages 55-75).  The same report also shows a projected decline in middle age trade-up homebuyers (ages 35-55).

This could have an impact as empty nesters decide to sell thier current homes to downsize.  A decline in thier home’s target purchaser can result in a slower sale and longer time on the market.  On the other hand, an influx of younger first time buyers eager to take advantage of a market in their favor should help to stabilize home values and start a more normal real estate market cycle.

This report is definitely worth reading in full. What do you see that I haven’t mentioned?

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3 Responses to Virginia Housing Trends and Generation Y Factor

  1. I am a member of gen x but I can say that gen y buyers have been 40% of my business this year.

  2. It used to be predictable however what about now? This recession will have an effect unless more jobs are available to potential homeowners.

  3. Julie Emery says:

    The big hole in the middle doesn’t bode well for McMansions. I’d say that market will stay dead for the forseeable future.

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