In today’s housing market, we are seeing an increase in interest in buying homes, but a decrease in interest in selling them. So, what does this mean? This means that there are more home buyers than there are homes. Because of this, there is more competition for the homes that are on the market, which increases home prices.

Why More Competition?

Harvard University Joint Center for Housing Studies' Housing Perspectives (JCHS), suggests that there are quite a few reasons why there are so few homes for perspective buyers. One culprit is that owners are stuck in homes because they're underwater on the mortgage. Another is because of a still-high volume of homes in the foreclosure process that are not yet on the market. A lack of new-home construction and the amount of single-family units that have been turned into rentals also play role in the lack of housing inventory.

The Generational Shift

The JCHS also points out something that experts have not really discussed, "The ongoing generational shift among American households has slowed sales in the short run and is likely to continue to dampen sales over the next two decades.”

This generational shift being discussed is the shift from homeowners being Baby Boomers (Born 1946- 1964) to Generation X-ers (Born 1965-1980). Generation X is approximately 9.3 percent smaller than the Baby Boomers are. They also own about 10.4 percent less households than the Baby Boomers did.

This 10 percent decrease leads to the lowest homeowner rates for that demographic in the past 20 years.

"Traditionally, the 30s and 40s are key ages for housing market activity – particularly for trade-up and new home purchases," the JCHS blog notes. "Indeed, homeowners aged 35-44 historically make up the majority of trade-up buyers. Fewer current homeowners in this key age group has meant fewer potential trade-up buyers and sellers, meaning fewer people putting their homes on the market."

Less people trading up means less inventory for new homebuyers.

What Does That Mean For Us?

Fortunately, Palm Beach, Florida still has many homes available and on the market-- homes that are just waiting for the perfect owner.

Go to www.palmbeachflhomesonline.com to see our full inventory.