WICHITA, KS: (wichitaksrealty.news) Existing home signed contracts rose 1.3 percent. This increase puts them at their second highest level in over a decade. This, according to the National Association of Realtors’ Pending Home Sales Index. With less inventory and little time to decide, the belief is that the sales numbers would be higher if there were more affordable properties for sale. Price increases have been seen in almost all regions of the country over the last year.
We are also seeing a direction change in builders activity. After 2008, many builders focused on the high end marketplace. But younger buyers are entering the market increasing demand for more affordable homes. This change has also increased apartment and condo buildings, as well. Regarding household formations, David Stevens, CEO of the Mortgage Bankers Association was interviewed on CNBC this morning and stated that , “.. this sort of emerging millennial generation that is continuing to drive the next generation of housing.”
This shift to younger buyers entering the housing market has many facets. The features and needs tend to differ in many aspects than past generations and will shape building trends for some time to come.