Yesterday, I promised that you’d learn a bit something about the Long Term Markets, the Mixed Outlook that will changed the way you see Real Estate Investing and how WE, The US Property Shop can help you. Well, check this out:
While it is difficult to gauge how close the market is to balance, the longer-term outlook is positive. Based simply on the aging of the current US population and average headship rates by age and race/ethnicity in 2007–9, household growth should hit 1.0 million per year over the coming decade. Additional demand will come from immigration, the need to replace existing homes, and demand for second homes. Employment growth is perhaps the most important metric because it is a leading indicator of housing demand. While nonfarm employment is still well below pre-recession levels in all but three states, the number of states registering job gains jumped from 2 in the first quarter of 2010 to 44 in the first quarter of 2011. Based on recent growth rates, though, returning to pre-recession employment levels will take more than five years on average.
Here is a mixed outlook. The demographic numbers are unstoppable. We are just spectators that can relay the information in stats, and watch it happen. People will get older and move to retirement homes and strong immigration will fuel demand. Those are 2 types of housing that will be purchased by new buyers, and this doesn’t include employment growth. There is hope if you read between the lines.
These efforts to bolster the safety and soundness of the mortgage system have, however, raised concerns that the changes will unduly raise the costs of credit and reduce access for borrowers with limited wealth.
Its odd that this statement is written in form of future expectance, but the truth is, this has already happened. If you have ‘limited’ wealth, even asking for ‘limited’ financing for a ‘limited’ starter home has already proven in many cases to be an exercise in futility. No wonder that 35% of purchases are now cash deals. So if people can buy a house cash, why is it they can’t get financing?
That is a riddle you will need to pacify – along with the story of the U.S. housing market, and stagnant job growth. Read more, ask questions, and let the experts at the U.S. Property Shop help you in your search to purchase a home in the United States.