We cannot lump the entire real estate marketplace into a single category. There are differences. Some are defined by price points, and another is defined quite differently.
Let’s start with the price point defined markets. And we will start at the bottom and work up. First is the starter home category. These can be detached or condos / townhouses. But these are defined as the first or second home people will buy, typically the younger generation is the buyer. The biggest issue here is there are simply not enough available homes to meet the demand. And there are many reasons for this which I have covered in previous blog posts. The see some of these posts visit www.55PlusInOcean.com or www.55PlusinMonmouth.com .
But when the owners of these starter homes do move on, they typically will purchase a bigger, more expensive home, and sometimes even another move or two will take them to a premium home. But it all starts with the first time buyer. And the first time buyer is having difficulties in finding that first time home. And they are competing with other first time buyers to actually get that home. This defines a seller’s market.
But when the sellers are moving up to bigger, nicer, more expensive homes, they are finding it easier to find a home than the first time buyers. And that is because there are more premium homes available than there are buyers. And this has created a buyer’s market for the premium homes.
But where do the sellers of the premium homes go? More and more, these sellers are in the Baby Boomer generation, and I’m one of them. And we are moving to adult communities in droves. So much so that there is a mild seller’s market in the adult communities. We are seeing that in an adult community where, at any given time about ten years ago, there were 40 -50 homes available, now there are ten – or less. And this is being repeated throughout the area in adult community homes.
So – in my opinion, we need more homes to be for sale in the starter markets. And also in adult community markets. However, the developers keep building the premium homes, even in adult communities. Why? Because they are more profitable. But what we need is more construction in the more affordable price ranges.
Do you need the services of a good, experienced Realtor? If yes, call us today. Call Bunny and Art Reiman at 732-598-7700. We can help.