New decade, new real estate trends. Just as many of us choose to make some changes in our lives come the New Year, the housing market is expecting to see some changes in how people are buying and selling homes in 2020.
As the Baby Boomer generation prepares for their next step, many of this generation may choose to downsize from their large homes to smaller houses, leaving behind a wave of homes on the market. This phenomenon is being called the “Silver Tsunami.” This is a trend that is expected to bring more than roughly 920,000 homes onto the market each year between 2017 and 2027, according to an article by MarketWatch.
The newly listed homes will likely be purchased by millennials, which refers to people between the ages of 23 and 38, who are quickly becoming one of the largest pools of homebuyers. According to the National Association of Realtors (NAR) and Sellers Generational Trends Report, millennials comprised 37% of homebuyers in 2019. In order to market homes to this new homebuyer profile, it is important to understand who they are and what their priorities are.
Many members of the millennial generation are more concerned with finding homes that have features that align with their own personal values and lifestyle goals. And although more millennials are beginning to purchase homes, their ideal homes may be different from the homes that Baby Boomers are exiting. What’s more, the millennial generation that was once known for clinging to urban areas is now creating its own happy medium between city and suburb, dubbed “hipsterbia.” This newly coined term is defined as smaller, suburban communities with more single-family homes paired with ideal access to shopping, dining, and entertainment options.
What does this mean for Metro Denver? Well, seeing as though millennials represent 23.7% of Colorado’s population, according to an article by 9News, there may be more demand for homes in the 54 neighborhoods that make up Metro Denver. Areas that are outside of downtown but not far from the action such as Greenwood Village, Lakewood, and Aurora could be the next “hipsterbias.” Total properties sold in Metro Denver through November of this year as compared to through November of last year rose by 3%, according to LIV Sotheby’s International Realty, supporting the statement that more homebuyers are showing interest in these neighborhoods that provide the best of both worlds.
With only days remaining before we enter 2020, we can look forward to the new year and witnessing new trends within the housing market. But no matter the conditions, trust a professional real estate broker to guide you through the process of buying or selling your home. For all of your real estate needs contact LIV Sotheby’s International Realty by calling 303.893.3200 or visiting livsothebysrealty.com.