Millennials emerged as a dominant force in 2015, representing almost 2 million sales nationally, which is more than one-third of the total. This pattern will continue in 2016 as their large numbers combined with improving personal financial conditions will enable enough buyers between ages 25 and 34 to purchase a home. The majority of those buyers will be first-timers, but that will require other generations to also play larger roles.
Two other generations will also affect the market in 2016: financially recovering Gen Xers and older boomers thinking about or entering retirement. Since most of these people are already homeowners, they’ll play a double role, as both sellers and buyers. Gen Xers are in their prime earning years and thus able to relocate to better neighborhoods for their families. Older boomers are approaching (or already in) retirement and seeking to downsize and lock in a lower cost of living. Together, these two generations will provide much of the suburban inventory that millennials desire to start their own families.
Assuming that most of these households will both sell and buy, 2016 is shaping up to be the best year in recent memory to sell.