Let’s face it . . . the real estate market is slow. This is true in Scottsdale and pretty much all across the US. Here in Scottsdale we were active until last October. Some say December. At any rate, it’s slow now. Much slower than 2012/2013 when we had that amazing 18 month stretch where prices went up 15% and everything was selling. But now it’s slow and we’re looking for reasons why.
Here are a few possibilities. The Canadian dollar lost 10% in value versus our greenback. That hurt. The foreclosures and short sales disappeared so that took the investors out of the market. And, as mentioned above, prices went up 15% so many Buyers just decided to take a break and let things cool off. No argument on any of this.
But maybe there’s another anchor putting a drag on our current market progress – the psychology of that generation now in their 20’s and early 30’s – the Millennials. Are they opting to rent instead of buy? The Boomers (now in their 50’s and 60’s) bought real estate like it was going out of style. So have the Gen X’ers (now in their late 30’s and 40’s). They both did well . . . until we hit the wall in 2008. Then the Millennials saw a lot of their parents take a real estate hit from the great recession . . . homes under water, short sales, foreclosures. And, on top of this, Millennials are loaded with school loan debt as well as having jobs that certainly don’t feel like they’re secure. Why buy?! They’ll just rent.
I took a scientific survey of two Millennials, my son and his girlfriend. They confirmed that they and their friends think that renting is the way to go! So now, just when the Boomers want to sell their family homes and downsize to that vacation home in Scottsdale, they can’t find anyone to buy their family home! We’re stuck . . . we’re static. I think there’s truth here.
So, please do me a favor . . . quiz your Millennials and let me know what they’re thinking. And if you want to see a funny spoof on the Millennials versus the Boomers, check out the YouTube video Millennials: We Suck and We’re Sorry!