The New Face of Home Ownership
The housing market will rebound. Let's think OPTIMISTICALLY folks. One day, hopefully one day soon, the U.S. housing market will come roaring back, and there will be a new group of buyers waiting to jump at the opportunity to purchase their dream home.
When that day comes, we'll start to see the excess housing inventory begin to thin, prices will begin to stabilize, and those unfinished homes dotting many neighborhoods across the country will finally be completed. As the market undergoes its transformation, a recent survey foresees some new trends emerging from the ashes.
A study by the consumer research firm, Mintel International Group, suggests minority home buyers — Hispanics, African-Americans and Asians — will lead the charge back into home buying. In addition Echo Boomers — those under 30 who are the children of the Baby Boomers — will also play a large part in fueling the housing market.
The research found that many people from these demographic groups missed the last housing boom because prices escalated so quickly, making affordability of buying more difficult. With prices now lowered, many here will attempt to make their move.
According to Mintel research, these groups are not only fast growing, they are very eager to buy homes. Although only 23 percent of the general population surveyed plans to purchase a new home within the next five years, the intent is far stronger among younger adults and minority buyers.
Of course, these new buyers must meet today's new, highly strengthened loan standards — standards unlikely to loosen much within the next five years. But their pent-up demand, alongside the resurgence of low-down-payment FHA loans for those with not-perfect credit, may provide the road map to home purchase.
Susan Menke, senior financial services analyst with Mintel, suggests lenders and home builders focus on these demographic segments as the housing market rebounds.
Visit DEAN & DEAN'S TEAM CHICAGO at BlogChicagoHomes.com.
Comments
Dean, there have been many studies showing that these groups will play a big role in new home sales. One interesting fact is among immigrant families, economic situations do not greatly effect the home buying desire, since for many this is part of their dream. One thing to note is that lenders may have to get used to the idea that there might be three people buying a house together (parents and a older child for example), so some standard mortgage packages may have to take this in to account.
Equal Housing Opportunity