The Shifting Trend In The Residential Real Estate Industry
The Counselors of Real Estate is an organization composed of individuals who provide intelligent and unbiased real estate advice for a client. The counselors of this group has talked about the demographic shifts, with baby boomers and millennials having the greatest impact on commercial real estate.
"This casts a spotlight on housing in all its forms: for seniors, the homes in which they choose to age-in-place, downsized homes, senior communities, or assisted living," the counselors said.
"For millennials, the decision to buy or postpone buying, and location most often being driven by amenities, such as urban walkable communities."
With this the counselors added that the real estate and service groups are adapting to the trend that these age groups are observing from medical facilities to entertainment venues.
In a column written by Alan J. Heavens for Philly.com, it was mentioned that interest rates have sunken down to nearly historic lows - and the broad opinion is that they will stay that way for quite a while.
The counselors have also said that, "Investors and home buyers alike are preparing for rates to increase, and when that occurs, "it will devalue future cash flows, thereby devaluing assets."
According to the column, an interest rate could cause the industry to see a spur in short-term commercial develop together with slower sales in residential real estate, but the rising rates will also drive higher mortgage payments, narrowing down the choices for home buyers.
The counselors also mentioned that if millenials buy before the interest rates go very high there is a possibility that this would create another stir in the residential market. Furthermore, they say that they have seen in Center City and resurfacing areas in the suburbs that the in increased demand for "live-work-play" and "walkable" communities is eminent among both young professionals and older generations and this affects housing choices
Some suburbs are feeling market pressure, with home resale not easy when younger families don't want the kinds of homes that are in plentiful supply from a past generation of suburbanites, the counselors said.