As mentioned, in one of our previous blog posts, 2023 will be the year of the buyer. Currently, the most active buyers in the marketplace are millennial buyers, capturing nearly 64% of the mortgage market today. More importantly, the average age of these buyers are a mere 33 years of age in one of the most expensive areas in the country, the tech capital of the world, San Jose, Ca. Similar to the Great Recession in 2008, markets such as Las Vegas and Phoenix, which became popular investment markets and also places that offered affordability for first time home buyers, have begun to be affected.
Millennials have begun to enter these exclusive markets, due to opportunity arising from move up buyers, investors, etc. sitting on the sidelines affected by uncertainty on rising mortgage rates and value in the marketplace. One thing that is for certain is, although Real Estate has had a (24%) change Y.O.Y, history demonstrates that Real Estate always appreciates. The appreciation of Real Estate builds wealth and that is why you are seeing millennials taking advantage of entering these once untouchable marketplaces.
