For the most part, the typical move-up buyers is also a seller. They have a property which has hopefully appreciated in value that they are looking to sell. Then, they plan to use the profits from the sale towards the downpayment on a larger home.
Move-up buyers typically own a condo or a co-op in a downtown neighborhood. Very often, after having started a family, the space squeeze of condo living has become less doable. At this juncture, many young people who have been resisting the call to the suburban life, start to embrace it.
As far as selling a small starter home, condo or coop, I’ve been saying it over and over again. Small is the new large. More and more people are embracing smaller spaces as a liberating experience from the burdens of a larger home. So this is a really good time to be selling your starter home, particularly if it is located in a downtown walkable area. Extra brownie points if your home is near public transportation like a Metro-North station.
Congratulations, from the standpoint of the sale of your home, you are in the cat-bird’s seat with a nicely competitive sellers market.
In previous posts, I have been emphasizing that there has been a major shift in housing preferences on the part of the millennial generation. The preference for downtown neighborhoods, the condo or care-free rental lifestyle has been strong. Due to crushing student debt and the prolonged effects of the great recession, many have put off getting married and starting a family.
Millennials with families are discovering what GenX and Boomers discovered in their turn. There is nothing quite like a suburban home when you have a growing family. More and more millennials will probably be making this discovery over the next few years. As they do so, these markets will become stronger. Rumors of the death of suburbia have been vastly overstated. The need for a more suburban lifestyle has been delayed for this generation.
Although they have the advantage with the sale of their starter home, the same can not really be said for the purchase. Nevertheless, move-up buyers are buying into a sellers market.
Due to a more tepid embrace of this market by the millennial generation, home values have not been rising as fast for the single-family home market . Areas with certain amenities such as banner school districts and other local amenities are in raging sellers market territory. Homes in areas with fine (but not famous) schools and amenities are gaining ground, but they are rising at a much slower pace than the overall market.
The final take-home message is simple: move-up buyers are in a good position to do well on both the sale of their starter home as well as the purchase of their new home.
© 2016 – Ruthmarie G. Hicks – https://thewestchesterview.com – All rights reserved.
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