'Intent to buy a home' stats claw out of their hole

Source: Forbes

The traditional American dream is to have a home, a house, an abode. Whatever you call it, your residence represents stability, maturity, and financial growth. At the end of a long day in the trenches, Americans always count on relaxing at home. The 2008 economic meltdown during the new millennium changed this scenario. Many parents watch as their children’s homes are foreclosed, downsized, or subsidized with multiple mortgages. The era of huge houses, living up to the neighbors’ standards, and purchasing on credit are gone.

Most Americans are grateful to be at work not sitting on the porch at home. Being at work means you (a) are employed, (b) earn money to help pay for the jumbo mortgage payment you couldn’t afford in the first place, (c) avoid looking at all the “stuff” inside your jumbo mini-castle that was paid using a credit card, or (d) avoid—at least temporarily—foreclosure on your house of the sort that had plagued your neighbors.

“Home” is now a concept not a structure. Americans are learning to make an apartment, condo, or living space a feeling of “home.” Many grown children are no longer financially better than their parents. Rising gas, food and clothing prices challenge the family budget; raises are non-existent. Still, life is good when a family member has gainful employment.

Anyone who owns a house understands the ramifications of the housing market since 2008. More likely than not, the value of your house is lower today than in 2008. If you want to sell your home, you may postpone the action due to a low selling price. If you must sell, it may take nine months or more for an offer and you probably won’t obtain the asking price.

At BIGinsight we asked consumers their intention to purchase a house. In February 2007, 4.6% of the respondents planned to purchase a house; one year later the number fell to 4.2%. Over the next two years, intentions to purchase continued to decline to 3.5%. As the economy brightened so too did home sales. In February 2011, 4.0% of the respondents indicated purchase intentions; 4.3% did the same during February 2012.

I am acquainted with a lot of realtors. To paraphrase the theme stated from the realtors…“the market is looking up.” According to the figures, yes the market is looking up. Some consumers will always want to live in a single family dwelling; I suspect I am one such consumer. The facts cannot be ignored however that (a) the number of foreclosures, (b) teens and older children moving back with their parents, (c) consumers choosing to live in their existing homes longer and (d) increasing number of consumers choosing alternate structures to call home (e.g., apartments) impacts the real estate market. The real estate landscape continues to evolve as the economy shifts.

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