The Pandemic Buyer Ready to Drive 2025

The Pandemic Buyer Ready to Drive 2025

Younger Americans who purchased homes during the COVID-19 pandemic are expected to be the primary home sellers in 2025 according to a Bright MLS survey. These homeowners, particularly those in their 30s and 40s, are motivated by family and career changes, despite current mortgage rates averaging above 6%. Many secured mortgages with interest rates below 4% during the pandemic and have accumulated significant home equity due to a 37% increase in national median list prices over the past five years. In contrast, only about 6% of homeowners aged 60 and above plan to sell in 2025, with the majority owning their homes outright and expressing little interest in moving.

Ralph’s Take

Historically, homeowners moved every 6 to 7 years. However, by 2018, the median tenure had risen to 13 years, a trend further reinforced in the past three years by rising mortgage rates. During this time, first-time homebuyers made up 32% of sales in 2020 and 34% in 2021. Now, four to five years later, it’s likely that many of these buyers are starting to consider their next move.