I read two articles today about how small signs of real estate recovery are being seen throughout the country. We have been seeing these signs in Orlando as the number of homes for sale has declined, the median sales price has increased, and the number of buyers remains pretty steady. The main question is will it continue? It is nice to see other economists and experts beginning to predict that 2012 will be the start to a slow but much needed recovery. Recovery is exactly what it sounds like though. We will not see major appreciation and boosts in values. That will take a long time; but we have to start somewhere!
Many believe the future is in the hands of the first time buyers and renters. They must decide to jump into the market and feel it is right for them. Primarily we will see “millennials” or Generation Y and investors with cash buying up the inventory for the next few years…that is if they can save up some cash and hold off buying the next big tech toy. Ok like I have room to talk …see above image! The reason Gen Y is expected to bring us through this market crash is because Generation X was hit hard during the crash. Most of them had purchased during the boom years and are now underwater and cannot “move up” for years to come. These homeowners will likely be staying put and possibly remodeling their current homes to fit their growing families and needs. Those Gen Xers who had to short sale due to a distress situation are now stuck for at least 2-3 years before they will be able to finance a home again.
And so we wait to see how Gen Y feels about the real estate market. It is, after all, largely consumer confidence that drives our markets …will Gen Y see the advantages of the amazing affordability available right now? I know I do; but I have insider knowledge. I just hope my fellow generation gets off their iPad and spend their money on something that can offer long term wealth.