There have been a few factors fueling buyer demand the past three years. Certainly, historically low mortgage rates drove some Americans to buy a house sooner than they may have otherwise. But most people don't buy a house simply because market conditions are favorable. Most of us buy because of a big life change like a new job, getting married, or having kids. That never changes, which is why in the months ahead demographics will play a bigger role in the housing market than affordability conditions.
For example, a recent consumer survey found the median age of first-time buyers last year was 35 years old. The millennial generation – which is the largest generation group in the U.S. at around 72 million people – is now between their late twenties and early forties. That means a lot of Americans are entering the stage of life when they're likely to buy their first home. It also means spring buyers should be prepared for competition, especially in the more affordable price ranges that appeal to younger home shoppers.
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