WHEN HOUSING MARKET REBOUNDS (And It WILL!) . . . Which Buyers Will Lead the Charge Back?
RESEARCH GROUP PREDICTS MINORITIES, THOSE UNDER 30 WILL MAKE LEAD NEXT HOUSING SURGE!
Here in Chicago, and across the U.S., average housing prices are falling. Inventories remain high. And home loans, especially within the last few weeks, are tough to come by for many.
But when the Housing Market turns back around - and it eventually will - who will be doing the lion's share of the home buying?
Research by Mintel International Group suggests minority home buyers - Hispanics, African-Americans, and Asians - will lead the charge back. So will a group they call "Echo Boomers" - those under 30 who are the children of we Baby Boomers.
Many from these demographic groups missed our last Housing Boom of a few years ago because housing prices escalated so quickly. With prices now lowered, many here will attempt to make their move.
According to Mintel research, these groups are not only fast growing, they are very eager to buy homes. Although only 23% of the general population surveyed plans to purchase a new home within the next five years, the intent is far stronger among younger adults and minority buyers.
Of course, these new buyers must meet today's new, highly-strengthened loan standards - standards unlikely to loosen much within the next five years. But their pent-up demand, alongside the resurgence of low-down-payment FHA Loans for those with not-perfect credit, may provide the road map to home purchase.
Susan Menke, Senior Financial Services Analyst with Mintel, suggests lenders and home builders focus on these demographic segments as the housing market rebounds.
Hopefully . . . sooner rather than later!
See Mary Umberger's column in the October 5th edition of the Chicago Tribune for more info.
DEAN MOSS & DEAN'S TEAM CHICAGO
