Mt. Vernon - Mt. Juliet HomesRE/MAX Carriage House, Mt. Juilet Homes for saleProvidence Del WebEddie Rockensock

Who is going to be buying houses and making the market turn upward?

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Young adults, that's who. UBS Securities LLC's Maury Harris and HIS Global Insight's Patrick Newport predict between 750,000 and 1 million new households will be created in 2011. The new household rate has stood at 357,000, making it the lowest on record.

More and more young adults are expected to leave the nest, so to speak, and start buying. The down turn in the economy has forced many young adults to stay at home longer than expected or return to the family home after their secondary education. The United States has also seen an increase of multiple generations within the same family living under the same roof in order to save money. This is a trend that many said had not been seen since the Great Depression.

As more jobs are created and the economy continues to strengthen, young adults will begin to get more confidence and dip their toes in the real estate market. This could be a very good thing to get the builders building houses again, since many young adults like the look and feel of new construction.

A prediction of housing stats reaching 900,000 comes from Brad Hunter, chief economist and national director of consulting for Metrostudy. That would be a big jump from the stats of 648,000 predicted for 2011.

Advice for first time buyers: find an experienced real estate agent and do some research about the market in your area. Different areas of the country, like Mt. Juliet, have fared better than others.

Source: "New Households Form at Fastest Rate Since '07 in Resurgent U.S.," Bloomberg News (May 1, 2011) REALTOR Magazine.

-written by Maggie Claprood and Judy Rockensock-

 

 

 



 



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