Are you planning to sell your property in the USA online? There’s a good chance that it won’t stay on the market for anything more than 2 weeks. There is a serious shortage of housing stock in the United States and properties are selling like hot cakes.
The real issue here is that not many homeowners want to sell. The number of homes available for purchase is at a two-decade low. Baby Boomers, people in their 50s and 60s and early 70s, have been notoriously averse to putting up their properties for sale, whether to trade up or trade down.
59% of Baby Boomers said in a survey that they had no plans of selling their houses. Usually there is a 4.6 month inventory of housing stock in the country. But this time, this has been down to just 4.3 months, according to the National Association of Realtors.
Baby Boomers are the biggest homeowners in the USA, with a homeownership of 78%. This means, Baby Boomers own 33 million properties in the country. That’s twice as many as Millennials. But clearly they are in no mood to sell.
As John Clark, 72, a retired teacher and homeowner says in an interview with the USA Today, “I’ve developed friends here, I’m with the (Veterans Administration). Why would I want to move? I’d have to redevelop all that stuff.”
Danielle Hale, chief economist for Realtor.com adds, “The housing shortage forced many first-time homebuyers to consider smaller homes and condos as a way to literally get their foot in the door. Our survey data reveals that we may see more of these homes hitting the market in the next year, but whether these owners actually list will depend on whether they can find another home.”
“Boomers indeed hold the key to those homes the market desperately needs, both in the urban condo and the detached suburban home segment,” explains. “But with a strong economy and rising home prices, there’s really no reason for established homeowners to sell in the short-term. Although downsizing might be on the minds of Boomers, they face the same inventory shortages and price increases plaguing Millennials.”
Baby Boomers are generally happy with their homes. They have no plans of upgrading and don’t want to take chances so late in life. They are also generally happy with their income. 72% said that they made enough to provide for their current home requirements. 13% said that they were worried about their financial security and 12% said that they planned to invest in substantial home improvements.
Baby Boomers of today are no longer so eager to move to traditional retirement hotspots such as Florida or Arizona, like the previous generation. They would rather stay where they are and spend quality time with their families. Many Baby Boomers have adult children living with them, so moving out of their homes and downgrading does not make sense at all.
What about Millennials who want to buy a house in the USA fast? Well, they will have to wait for their turn and engage in a competitive bidding process for the limited number of properties for sale in the USA.