Homeownership forecast bottom at 2014
I came across a story at Dr. Housing Bubble Blog
. There's a reason they let this stuff out, and information from purveyors of fraud should be treated with caution.
Maybe just trying to move the inventory in the banks so they can extract more wealth, or at least get some new investors. They're trying to screw someone - it's what they do. I just don't know who yet.
Quote:...The drag of distressed inventory is definitely being felt in the homeownership arena. Think about what is happening right now. Over a decade of stagnant income and weak employment growth has created a major gap in the demand for housing. On one side, you have new household formation but many younger families are less affluent than the big baby boomer cohort that owns a good portion of current housing. The younger families are demanding lower priced homes and baby boomers are looking to cash out at higher prices. The gap is created especially with so many legacy loans still priced at face value peak prices. The report put out by Goldman Sachs understands this drag being created by the shadow inventory:
Even at the 2014 estimated bottom, some 64 percent of Americans will be considered homeowners. That is a sizable portion but lower from where we are even today. At retirement many can rest assured (assuming they paid off their mortgage) that their home is now fully owned or can go for a reverse mortgage if they are on the verge of eating off the dollar menu at McDonalds. It is troubling that the projections for Social Security not being able to pay out full benefits hits when many of these younger buyers will enter into their own retirement although their rate of paying into the system is the highest on record. The scary thing is that as we enter the peak of baby boomer retirements, the housing market is at its nadir in terms of price: