Homebuyers are being told to expect a drastic shift in the housing market as thousands of baby boomers are expected to downsize in the next few years, leading to a massive increase in homes for sale.
Supply and demand
Housing market analysts believe that as ageing homeowners look to move into smaller properties, there will be a flux of properties hitting the housing market. This is despite current high interest rates and could mean that prices fall even further as supply outstrips demand.
While it might seem like good news for younger buyers, there is a risk that first-time buyers still miss out, as pensioners snap up smaller, more affordable homes and price millennials out of the market. Baby boomers will continue to dominate, as they have the most cash to spend and could make higher offers on smaller properties, leaving younger buyers stuck in rentals.
Ensuring the right home for you
According to The Telegraph, there are calls for stamp duty to be reduced for ‘last-time buyers’ in order to free up smaller housing stock for younger buyers.
Negotiating the housing market can be tricky for those with no experience, who will require at least a level 2 home survey to check the condition of any property before they commit. If you are looking for a level 2 home survey, contact a legal specialist who can offer advice and guide you through the differences between a level 2 home survey and a more comprehensive level 3.
Equally, downsizing isn’t always an easy decision for older people, who may have spent the bulk of their lives in their family home and haven’t had experience of the housing market for decades. In reality, they are likely to continue to hold the largest share of residential properties.
