So far this year, the housing market has experienced its strongest spring season in ten years with year-to-date home sales up 6 percent over last year through May. While 6 percent may not seem all that impressive on the surface, when taking into consideration that last year was the best year since 2007, it begins to look a little more rosy.
We still haven’t completely recovered from the housing crash, however, as evidenced by the fact that we’re still building only half the new homes needed to keep pace with the number of households being formed. As CNBC reports, this is partially due to the construction industry having a difficult time accessing credit and partially due to other factors such as stricter building rules and regulations, a labor shortage, and lot shortages.
On the bright side, though, is the fact that Millennials, the largest generation in history, are just beginning to enter their prime household formation years. Meanwhile, Baby Boomers, currently the second largest generation, are beginning to reach that “empty nester” stage and are looking for new places to live, as well.
Additionally, higher mortgage rates are not expected to rise anytime soon, adding another level to the appeal of buying a home. With everything set up how it is, the chances of seeing the best summer season in a decade are very strong.