Homeowners Don't Want To Move To New Homes As Frequently
Americans are not moving as frequently as they have in the past and the lack of houses for sale in the housing market is partially the explanation for the changes in home sales, according to The Wall Street Journal.
According to real-estate brokerage Redfin, in 2010, homeowners typically stayed in their homes for 8 years. Almost a decade later, the average homeowner now typically resides in their home for 13 years. “If people aren’t moving on, there just are fewer and fewer homes available for new home buyers,” said Daryl Fairweather, Redfin’s chief economist.
The issue with homeowners staying in their homes for longer is that it plugs up the market for buyers who have growing families, or families that can downsize once children are out of the house. Housing inventory is at its lowest level in decades and prices for these homes have increased drastically.
According to the housing-data firm CoreLogic Inc., adjusted for population changes, the inventory of homes for sale is almost at its lowest level in 37 years. Not even extremely low mortgage rates, record levels of home equity, and a strong job market have been enough to rekindle the struggling housing market.
Increasing life expectancy amongst baby boomers has been the biggest proponent of the stagnation in the housing market. Many individuals in this generation are living longer and choosing not to downsize. Americans, in general, are choosing not to move as frequently, and the housing market has been feeling the results.