The recent Case-Shiller housing price index showed that prices fell in the first quarter to the lowest levels since the real estate crash began. The "psyche" that the media is portraying has stated that there are more people who desire to rent versus owning now because of the real estate market not being conducive to buying a home today.
According to an article from The London Group, this is just a bunch of baloney. If there are more people who desire to rent vs. own, it's because they should be renters based on who they are and on demographics and lifestyle. Gen Y people, born between 1979 and 1999 are dictating the housing patterns.
Think about it, the 82 million of that GEN Y are just now entering their early 30s, staring, or now settling, into their careers. Many must be mobile to accommodate new job opportunities. They spend the beginning of their adult lives saving money so they can actually place a down payment on a new home. If anything, they are considered temporary renters and are creating a boom in new rental construction and a current run up in rental rates across the nation.
So, what does this all mean?
It means that the outlook for price stability and price increases are much better and that most of the sales over the past five years have been considered distressed sales and reflect price deflation. Ultimately, the collective mindset of the market dictates the flow of the market. The housing market is doing exactly what we all expected which is that the market bottomed out and has been bouncing back over the past couple of years.
While home ownership rates have dropped, and rents have been rising, this is not considered the time to walk away from home ownership as the media would have you believe but rather this is really the perfect time to be a homeowner!
About Me
- REBECCA NEGARD
- When enlisting the service of a real estate professional, you want someone who is both knowledgeable and experienced in all aspects of real estate and has a solid understanding of the unique San Diego real estate market. With nearly three decades of professional real estate experience in both sales and brokerage, I am a trusted advisor my clients can rely on. Ascending to the peak of the luxury real estate market requires traits that I possess in abundance. Detail, patience and integrity are hallmarks that have defined my practice since 1979. As a top producing agent in beautiful San Francisco with well known brokerage Grubb Ellis, my exposure and representation of the city's most exclusive properties demanded an unrivaled level of commitment and service. Still passionate about real estate I joined Sotheby's International Realty as a broker associate where I continue to share my deep understanding of the market and hard-won experience in transaction process and negotiation. I am a member of the National Association of Realtors and North County Board of Realtors.
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