Is the baby boomer generation ever going to disappear? Well, they surely will, but it could take another 40 years since the youngest of this influential generation is only 58. This large generation born after World War II has affected every aspect of life in America culturally, financially, morally and, of course, in the real estate market.
The latest study of baby boomer influence on the real estate market is from the National Association of Realtors’ (NAR) 2023 Home Buyers and Sellers Generational Trends. This extensive study examines the similarities and differences of recent home buyers and sellers across generations. The study found that the combined share of the real estate market for all baby boomers rose to 39% in 2022, up from 29% the prior year. The combined share of the baby boomer market is defined as the older boomer buyers who are 68-76 years old and the younger boomer buyers who are 58-67 years old.
Millennials ranging from 24-42 years of age have seen their total share of the market fall from 43% in 2021 to 28% last year. Millennials are the target buyer for the baby boomer homes and it’s not advantageous to see this generation’s buying power decreasing, likely because of employment instability and inflation.
Baby boomers have the upper hand in the homebuying market since the majority of them are repeat buyers who have housing equity to purchase dream homes or ease into retirement homes. But if their target buyers are having problems buying, it will eventually affect them. In addition, 26% of all buyers, according to the study, were first-time buyers, which is the lowest since the NAR began tracking the data and a decrease from 34% last year.
A few other interesting points in the study were that all generations agreed that the most common reason to move was to be closer to friends and family and that overall, buyers relocated a median of 50 miles. Also, 86% of all buyers purchased their homes through a real estate agent, proving that regardless of how great the internet is, buyers still want that personal touch.
Time to discuss the March real estate sales statistics for Manatee County reported by the Realtor Association of Sarasota and Manatee:
Single-family homes closed 4.4% more properties from last March. The median sale price was down 6.3% to $491,988 and the average sale price was down 9.3% from last March at $638,055. The median time to contract was 46 days compared to five days last year, and new listings are up by 0.7% and new pending properties are up by 7.9%. The month’s availability of properties is three months, still a low number.
Condos closed 7.7% fewer properties from last March. The median sale price was up 10.1% at $353,000 and the average sale price was up 6.5% at $419,574. The median time to contract was 23 days compared to five last year, new listings were up 3.9% and new pending listings were down 5.8%. The month’s availability of properties is 3.7 months, again a low number.
We have kind of a mixed bag this month in Manatee County, almost as if the market is trying to adjust to the end of season and the influence of the economy. However, we in the state of Florida generally continue to buck the national trend, which we’ll talk about further next week.
Finally, NRA’s study also indicated that the youngest generation of home buyers, Gen Z, have a real desire for homeownership and are getting into the market with help from family to make their first real estate purchase. Some things never change; owning a home is more than just a financial investment, it’s a symbol of stability, independence and community.
