Metropolitan areas that are home to larger populations of math and science professionals and baby boomers are bucking the usual seasonal trend of a real estate slowdown as summer ends, realtor.comÂ® research shows.
Properties in 12 major metro areas are spending less than two months on the market, according to theÂ realtor.comÂ® September National Housing Trend Report, released today.
â€œWhen we see homes moving quickly in a particular market, we expect the trend to be supported by signs of local health like growth in industrial production and employment,â€ said Jonathan Smoke, chief economist for realtor.comÂ®.
The high proportion of math and science professionals in these fast-moving housing markets likely has to do with the higher incomes found in those professions, which also attracts job seekers from other areas, Smoke added.
â€œSo, assuming the portion of people moving in have above-average jobs, you have a recipe for strong demand up against tight supply,â€ he said.
As for the baby boomers, Smoke pointed out this is a huge generation and the one with the most wealth. Many of them are approaching or will soon be thinking about retirement, a major life event that spurs housing transactionsâ€”whether theyâ€™reÂ downsizingÂ because the kids are gone, upsizing to theirÂ dream homeÂ or selling to move toÂ senior livingcommunities.
All of those decisions support local construction and economic activity,Â providing a strong base for housing demand, Smoke said.
â€œAs the technology industry grows and aging baby boomers decide to make housing moves to support their retirement, weâ€™ll continue to see strong housing demand associated with these factors.â€
â€œTo truly relieve the inventory shortage on a sustained basis, new home construction needs to rise by at least 50%Â from the current levels,â€ said Lawrence Yun, chief economist and senior vice president of research for the National Association of REALTORSÂ®.
For the complete realtor.comÂ® September National Housing Trend Report, visithttp://www.realtor.com/data-portal/realestatestatistics.