From Michael Orr at The Cromford Report:
August 14 - The Cromford® Market Index is still showing an improving market for sellers with 9 out of 29 cities now above the neutral 100 mark and another 4 between 90 and 100. When we look at the individual cities and their single family market we see a wide range from Maricopa at the bottom to neighboring Sun Lakes at the top. Generally speaking, if a market primarily services baby boomers it is doing well, if it primarily services Generation X then it is doing less well and if it primarily services millennials then it is likely to be doing poorly. Millennials continue to prefer renting and spending a lot of money in restaurants. Here is the CMI table:
Few millennials are working as real estate agents and many agents get the majority of their clients from their peers over 35. From their perspective everything may look great. But the low percentage of buyers from the under 35 age group is becoming a serious problem for the for sale housing market and creating an unnatural boom for the rental market. This cycle will turn around at some point, but no-one knows exactly when.