Demographics Provide Hope For Brighter Future
The impact of the coronavirus has caused a lot of uncertainty for prospective home buyers and sellers. But while economic concerns and worry about the virus' spread has dominated the news, there are some indications that the housing market may be able to weather the storm better than other segments of the economy. For one, its onset comes after many years of stable economic growth and a strengthening job market. That more than a 10-year streak of improvement led to a real-estate market where demand for homes was so great that the supply of available houses for sale couldn't keep up – leading to rising prices and more competition. In short, the strength of the market heading into 2020 provides a cushion to absorb some of the effects of ongoing mitigation efforts. Additionally, demographics offer hope for a brighter future once the virus subsides. Simply put, the large number of Americans now at or approaching the age of the typical first-time homebuyer means demand for homes will inevitably return, as those 26-to-32-year-olds get back on their feet and look to create households of their own.