Uncategorized March 21, 2024

What is The Silver Tsunami?

There’s been a buzz lately about a so-called “Silver Tsunami.” 

The term suggests that a massive wave of baby boomers are getting ready to transition to smaller homes, flooding the market with larger homes for sale.  While this is great news for nationwide inventory and decreasing home prices, economists say don’t hold your breath.

“Demographic trends don’t ‘tsunami’”, says Mark Fleming, Chief Economist at First American, “They trickle.” The baby boomer generation spans over nearly two decades, which means any demographic shifts in real estate will unfold over an extended period. 

Nevertheless, the market is heating up ahead of the hot real estate season: spring!

“We may not be completely saturated, but more and more houses are being listed,” says Julia Dagistanli, “Expectations for the upcoming spring market are high for both buyers and sellers.” Pent-up demand from those who postponed buying in the winter months will benefit those who postponed listing until spring.

For buyers: mortgage rates are continuing to decrease making homeownership more affordable and accessible – and making buying this spring more enticing. Lower interest rates means buyers can spend more money on a house.

For sellers:  limited inventory will drive up both demand and prices for available homes on the market, making it more likely you’ll get top dollar for your property.

“Silver Tsunami or not,” says Jennifer Darby Metzger, Broker/Owner of ERA Justin Realty, “The spring real estate market is poised to be hot. Both buyers and sellers alike should get ready to act fast.”

“Buyers can get a head start by finding a trustworthy mortgage broker and obtaining a pre-approval letter stating the maximum amount they can pay for a home,” says Dagistanli, “Sellers can get a head start on spring cleaning ahead of open house season.”

No matter your stage of life, Julia Dagistanli or any of the agents at ERA Justin Realty can help you reach your real estate goals. Give us a call at (201) 939-7500 or stop by our office at 46 Chestnut Street in Rutherford.