The housing inventory shortage could become tighter in 2018, according to a new study released by realtor.com. In a poll of 1,054 homeowners, the study found approximately 59 percent of respondents had no plans to sell their home in the next year, while 35 percent were planning to sell and nearly six percent were unsure. Among those planning to sell in the next year, 60 percent of potential sellers were Millennials who were either looking to buy a larger home (25 percent) or one with what they considered as “nicer features” (24 percent).
Realtor.com noted the sale of Millennial-owned housing could possibly free up the supply of starter homes, which was down 17 percent year-over-year—in comparison, the medium-sized home inventory was down 10 percent and the larger-size home supply was down five percent. However, 85 percent of Baby Boomers surveyed stated they had no intention to sell their home in the next year.
Realtor.com noted that homeownership among Boomers is nearly twice as high as the level among Millennials, thus limiting the overall housing inventory. “The housing shortage forced many first-time home buyers to consider smaller homes and condos as a way to literally get their foot in the door,” said Danielle Hale, chief economist for realtor.com. “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.”
Source: National Mortgage Professional