What’s inside?
According to 2014 Census data, the largest single age group of younger Americans is 23, followed by 22 and 24, (each group containing around 4.5 million people). With the prime age for buying a home at 31, we can approximate an increase in home sales and mortgage originations in about 6-8 years.
The coming buying bulge of millennials is not the only demographic driver for home sales—the average age of move-up / repeat buyers is 39 and in eight years there will be approximately 4.2 million people who are potential repeat buyers of that age group, (compared to about 3.9 million currently). See the exhibit below.
What’s happening in the local housing market? Check out the chart below to see the median sales prices for single-family homes in the Beach Cities and Palos Verdes Peninsula over the last four years and go to page 98 for a more in-depth look at current active/closed sales date for the entire South Bay in 2015.
