This Generation Of Consumers Are Coming Of Age And Seeking Real Estate

Category: Finance, Real Estate.

Phoenix has become one of the hottest real estate markets in the country for the last couple of years.

But as interest rates begin to nudge up, many economists are suggesting the appreciation rates will level off, or even begin to fall. This constant demand for real estate has resulted in almost unprecedented appreciation rates. You don t have to rely on the advice of experts entirely when evaluating real estate appreciation. Some of the factors that contribute to appreciation in real estate are: Growing Population. Instead, you can look at some of the drives that affect appreciation and see if the market values will increase or fall. Increased population rates create additional demand for real estate, that demand creates significant appreciation. In fact, Phoenix is known as a very strong job market with many corporations establishing new production facilities.

In Phoenix, economic conditions are strong- there are a number of companies moving to the Phoenix area. Parts of Phoenix are becoming known as the new silicon valley, or silicon desert. While Phoenix isn t necessarily one of the highest paying job markets in relation to other markets, the steady economic growth has created a competitive job market and salaries. Income rates. Higher wages provide buyers with more buying power for real estate, which keeps prices appreciating. Phoenix has always been a popular vacation destination and retirement center.

Vacation homes. But vacation homes aren t only for retirees. Again, this simply accelerates the demand for real estate which keeps home prices appreciating. In fact, 40 percent of all homes sold in the United States last year were vacation or investment properties. Immigration. What most people don t realize is that this immigrant population also seeks out real estate.

Arizona is known for its ever increasing population of immigrants. In fact, 40 percent of immigrants own their own home. Echo Boomers. With a constantly increasing immigrant base, it only follows that there will be a consistent and steady demand for real estate. Lots of people know that the baby boomer generation has significant buying power in the United States. This generation of consumers are coming of age and seeking real estate. What most people don t realize is that the baby boomers are contributing to demand through their children.

This generation is called the" Echo Boomer" generation- the expectation is that they will echo the demands of the previous baby boomers. There are a number of factors that contribute to the success of the real estate market and the appreciation of real estate. Real estate appreciation simply doesn t rely completely on economic trends or nation- wide inflation. Look at the trends of the current population- it s a farm more accurate predictor of future real estate trends.