Spinning Wheel - what goes UP must come DOWN - so goes the Housing Market

By
Real Estate Broker/Owner with Crown Key Realty, Tracy & Mountain House Real Estate 01490605

I had the priveledge of listening to Doug Williamson of VRM speak last week at Corcoran's REO Bootcamp.  

 I was rivited to my seat as he presented stat after stat regarding the current housing market.

 One of the first things I noticed is.

 What goes UP must come down...

Stats of change in owner owned households vs rental households

The chart above provided by Morgage Bankers Association clearly shows the recent changes.

 Is anyone surprised that owner occupied huoseholds were a record high in 2004?  Are you surprised that rental households were at an all time high in 2007?  This is no more true than in the Central Valley of California.  

 Tracy and Mountain House have seen not only a steep decline in values, but a surge in rental vs owner occupied homes. First time home buyers are purchasing homes, however the number of investors that are purchasing homes to use as a rental is staggering.

 Look closely at the yellow line, are we still on a decline?    The chart shows record number of home owners are pursuing short sales and choosing to allow their once owner occupied home to go to foreclosure.

I wonder if in 5-7 years when all these households can purchase again will see a huge surge in home ownership again, or will these households be content to rent?

What goes up must come down, and what goes down MUST it come up?

 Where is the stopping point?  Can our country's housing crisis be fixed?   How long will this "recovery" take? 

 Is home ownership still be the American Dream?

What's your opinion?

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Market Trends
Location:
California
Groups:
The Ninety-ninth Percentile
The Lounge at Active Rain
Realtors®
LATE NIGHT - EARLY MORNING AT ACTIVERAIN
Addicted to Active Rain
Tags:
housing market
owner occupied vs rental properties

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Anonymous
Mary Right

Wow, Susan, what great information. You are so right.  My husband and I used to be home owners.  I got laid off from work, and we had to make the heartbreaking decision to stop paying our mortgage.  That was never our intent.

A short sale did feel like the honorable thing to do.  You were amazing in helping us every step of the way. We are so thankful that we found you.

We can't wait until we are able to purchase a home, you'll be our first phone call.

Nov 07, 2011 01:35 PM #1
Ambassador
416,820
Susan Goulding
Crown Key Realty, Tracy & Mountain House Real Estate - Tracy, CA
Northern CA - Tracy & Mountain House Real Estate

Mary - you are welcome, I was honored to be chosen to help you.  

Nov 07, 2011 01:37 PM #2
Post a Comment
Spam prevention
Show All Comments
Ambassador
416,820

Susan Goulding

Northern CA - Tracy & Mountain House Real Estate
Call today to ask how can I help you?
*
*
*
Spam prevention

Additional Information