While some analysts say that the collapsed in home-price bubble could result to turning would-be first-time homeowners into permanent renters, other economists and real estate experts say that would-be home buyers have not given up on real estate as an investment.
A recent study of John Burns Real Estate Consulting forecasts that the homeownership rate for 25 to 34-year-olds will keep on falling through 2015.
The John Burns Real Estate Consulting study shows that first-time home buyers since 2009 have decreased by 20%.
Ben Sopranzetti, a professor at Rutgers Business School, told Bloomberg Business Week, “This is purely an economic phenomenon, not a behavioral one.”
Joel Kotkin, an acclaimed author on economic, real estate and social trends, told Bloomberg Business Week, “You have to look at it as a life cycle. The Millennials (25 to 34-year-olds) are going to grow older and want to settle down.”
Many would-be first-time home buyers are putting home buying on hold as a result of the unemployment rate in this age group, dormant wages and higher-than-ever student loan debt.
Whether you are a first-time home buyer, first-time home seller, empty nester, thinking about selling a home or buying a home, do contact the Guldi Real Estate Group. In Southern Maryland, the Guldi Group is the number one real estate team.