By Dr Denver H. Bubble
The outlook for the housing market is continuing to worsen. Only 13% of Americans say they want to buy a home in the next 12 months, making it the third straight quarter in which fewer people want to become homeowners.
There were four age grouped surveyed. Seniors, baby boomers, generation X, and generation Y. Out of the four age groups surveyed, generation Y were the most likely to be planning a home purchase, with a 19% of that generation responding that they wanted to purchase a home in the next 12 months. The percent who wanted to purchase a home decreased as age increased. 13% of generation X, 7% of baby boomers, and only 3% of seniors plan to buy a home in the next 12 months.
Across all generations, only 19% of survey respondents expect their house hunt to get easier in the coming months. About 3/4 of respondents, 79%, can afford fewer than half of the properties available in their home markets. Denver, in particular, stood out at as an unaffordable market for all ages.
Buyers are not adjusting their expectation. Only 23% say they’ll settle for a smaller or older home than originally targeted. With buyer expectation pushing the demand curve for homes inward look for additional price drops on the horizon for the Denver metro market.
Image sourcce: Marketwatch.com