Looking Ahead to Fewer Buyers

The percentage of Americans who own their own home is down to 66% from the recent historic high of 70%, and falling.  Several factors will combine to make it fall farther in the years ahead:    1)  Risk-averse banks are imposing tighter credit requirements and asking for higher down payments, keeping many people out of the market; 2)  People who have just been through a foreclosure or a short sale won’t be considered mortgage-worthy for years to come; and 3) Baby Boomers are done with trading up. Now they’ll be sitting tight where they are, or downsizing.

I’m not saying these trends are bad, but their cumulative effect will be to reduce the number of buyers who are ready, willing, and able to buy a home for the next few years. Not good news for sellers.  People are still moving, though, and many of them are moving to North Carolina.  We are likely to fare better than most other states, with more than our share of buyers.