Summer Moving Tips

Most residential moves in the U.S. take place between Memorial Day and Labor Day. Whether you are working with a professional moving company or renting a truck and relying on friends, here are some tips to help keep your cool.

• A move that is well thought out in advance helps eliminate problems and delays on moving day.
• Start early and stay hydrated by drinking plenty of water and other fluids.
• Wear light, comfortable clothing and apply sunscreen throughout the day.
• Pack a bag with essential items such as a change of clothes, toiletries and snacks.
• Make sure the AC and other utilities in your new home are turned on.
• Prepare for unpredictable weather by having towels and tarps handy to keep your belongings protected.
• Move on a weekday for potentially lower rates from your moving company and to avoid heavy traffic.

Moving can be physically and emotionally draining, so get enough rest, eat healthy meals and make sure to take breaks as you need them.

Gen Z Enters the Market

Born at the turn of the century, Gen Z is now entering the housing market — and they have big dreams when it comes to homeownership. A recent generational survey reports over 92% believe owning a home is a source of pride and offers more privacy, control and independence.

A strong job market and government support during the pandemic helped Gen Z avoid many hardships older generations endured in the wake of the Great Recession (2008-09).

This could help explain Gen Z's positive outlook on real estate. In fact, according to BusinessInsider.com, "The pandemic, which threw a wrench in many Gen Zers' postgrad plans, has also nudged more members of the generation toward alternative investments like real estate."

Housing Market Heats Up Among Generations

A generation gap in buying power has intensified competition between millennials (ages 24–42) and baby boomers (ages 58–76).

Millennials have fallen behind baby boomers as the largest generation of home buyers for the first time in nearly a decade. Baby boomers now comprise 39% of home buyers compared to 28% of millennials, according to a recent National Association of Realtors^® (NAR) report.

NAR economist Dr. Jessica Lautz explains why this makes sense: "Baby boomers have the upper hand in the home-buying market. The majority of them are repeat buyers who have housing equity to propel them into their dream home — be it a place to enjoy retirement or a home near friends and family. They are living healthier and longer and making housing trades later in life."

Whether baby boomers opt to downsize locally or move to a new community, their savings enable them to outbid millennials and Gen Zers (ages 18–23). Younger buyers who are ready to buy will likely have a better chance of finding an affordable house if they're flexible about the size and location of the properties they're viewing.

Should You Consider an Adjustable Mortgage (ARM)?

An ARM offers attractive benefits for buyers seeking ways to reduce the price of entry into the housing market. A typical ARM starts with a lower fixed rate for 3–10 years. After that introductory period ends, the rate adjusts based on market conditions.

Here's an example of a common 5/1 ARM with a 5% cap. After five years, the rate adjusts once per year, but not by more than five percentage points above your initial rate. ARMs make sense for some home buyers who plan to repay their loan or sell before the end of the introductory period. However, ARMs can be complicated. Be sure to discuss the fine print with a trusted mortgage provider.

Risk-averse buyers may prefer a fixed-rate mortgage where the interest rate remains the same for the life of the loan, regardless of what's happening in the market.