Are we in a true a Real Estate market recovery?.....As as President of C21 Exclusive Property and as a real estate professional in my market , I have to question and the true strength and sustainability of our market recovery in the Inland Empire because few first time homebuyers are willing or able to buy homes. If you look at all the current data , its either investors or the higher end of the market that is growing. There has been a sudden demand for higher end homes but when we see an equalization the question will remain , Do we have a sustainable housing recovery without providing homes for the first time homebuyer? There are multiple factors limiting the participation of first time homebuyers. Tight standards, high unemployment,and the rate of new hiring in the workforce. The low participation of first time homebuyers is also making the builder reluctant to build new housing. Our housing recovery over the last 4 months is more fragile than most economists had hoped. After speaking with a business partner of mine, builders are not completely confident yet. Heres a good stat for most of us to ponder on. Typically firstime homebuyers account for 60 % of household formations currently we are at 25% statewide. Many of these people are now putting off major life decisions like getting married ,having children and of course, buying a home. Many are staying with mom and dad instead. Without the ability of the first time home buyer to participate in the recovery, Are we truly in a real estate market recovery? Your thoughts are appreciated. Its another great day at Century21 Exclusive Properties. Im looking for a few good agents or clients and would love your referrals......Data was used is from California Association of Realtors...
Posted on: Thu, 17 Oct 2013 21:07:04 +0000
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