Gen Y is coming into the Market

 In 2006, the dynamics of the Baby Book entering their 60's and the average age of 1st time buyers being 33 collided head on. 2006 showed us that there weren't as many first time buyers as we previously had.

The results is that we have an oversupply of inventory and a lack of demand simply because they were not born. Our inventory is about 2 years full, and compounding the problems we have a financial distress situation which has caused prices to go down to meet younger buyers affordability..

First time buyers have always driven our market. That first step, creates other sales. They cause an average of 3-4 mini trade ups. Today since we have reduced prices, we are also looking at an average value of 30 instead of 33. We are just starting to tap into the Gen Y's who were born in the 1980's.

47% of the 2009 buyers were first time buyers. These precious first time buyers are not getting on the trade up ladder because of the job market. Also we find that those buyers want it now and because of the pressures of jobs, they just don't have the time for fix ups. They are expecting the house perfections.

Until the absorption rates of first time buyers rise to the required rate to absorb the inventory, we will have increases of sales, but we still will experiance an oversupply of inventory, some falling prices and with employment a question mark, foreclosures and short sales.

Hope that explains the market and our Choice Buyers of Tomorrow, Generation Y.