Moving Towards Economic Stabilization

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I read a Certified Residential Specialists report that touched on today’s attitudes towards home ownership, housing needs and trends.

Because of my age, I wasn’t surprised to learn that according to the U.S. Census Bureau, the number of Americans 50 and older is expected to increase 30 percent in the next 20 years. The number of older Americans will grow from 100 million in 2010 to 130 million in 2030.

In an effort to be prepared, AARP’s Public Policy institute and the Center for Housing Policy have co-authored a report that outlines strategies to meet the housing needs of this growing demographic. Some of the strategies include, making homes more affordable, weatherization and solar installations to reduce energy costs, providing social services, expanding transportation options and expanding housing choices.

I see this as a niche market and opportunity for seniors, Realtors, developers and builders in our community. I would love to see some creative housing plans for quasi-independent living. Rural co-housing concepts would be ideal in our foothill community.

Today’s double digit declines in real estate values has had some experts claiming that a new generation of Americans will not value home ownership. Despite the recent downturn in housing, Americans still value homeownership!

According to a Fannie Mae National Housing Survey, 65% surveyed said they prefer owning. 60% believe that buying a home today is harder than it was for their parents and 68% believe that it will be even harder for their children. 80% of all those surveyed believe that home ownership is key to economic stabilization.

Potential home buyers are definitely more cautious about venturing into home ownership. Approximately 23% of renters are planning to buy a home later than originally planned. Safety and quality of local schools are the primary reasons for wanting to own as opposed to rent.

Homeowners with 30 year fully amortized loans with fixed interest rates and predictable monthly payments are more satisfied than those with non-traditional loans.

Home ownership dreams are not dead. According to the latest figures from the National Association of Realtors, the pending home sales index which is considered a forward-looking indicator based on contracts signed as opposed to escrows closed, rose 8.2% in February and was 17.3% higher than in February 2009. These figures indicate a much needed spring surge!

If the current shopping spree continues our inventory will be absorbed and we will be one step closer to economic stabilization.