buyer demand is here to stay because of this...

[Kenny Smith]

Starting in 1987, we saw the birth rate here in the U.S. start to climb again. That year, we saw 15.7 births per 1,000 people.

In 1990, that number peaked at 16.7 births per 1,000. To put things into perspective, today, the rate is roughly 35% lower at 11.

What's significant about that peak birth rate in 1990, is the people that were born that year, are now in their mid 30's. The same age that the average person buys their first home here in the U.S; 34-36.

Over the next several years, the buyer demand is going to continue to be ever prevalent with all of these home buyers entering the market for the first time.

Coupled with the ever growing inventory issue, long term, prices are likely going to continue to go up and up for the foreseeable future.

The big relief will come on the the other end of the spectrum from baby boomers. They are getting older pushing into their 70's, and will start trading down or selling and moving into retirement homes.

The birth rate for baby boomers between 1945 and 1960 hit a peak of 24.6 births per 1,000 people in 1950. Over the next 10 years, this could be the inventory the market desperately needs...

Curious to hear your thoughts on this?