Inquiring minds have been seeing this more lately. And now its the LATimes reporting it.
Skittish after seeing home prices crater and eager to put money aside for a retirement that won’t include pensions, working-age people are increasingly skeptical about buying a home.
Surveys tend to support the premise. Two-thirds of Americans still see a home purchase as a safe investment, but that’s down from 83% in 2003, according to a study by Fannie Mae. Homeownership has fallen to 66.5% of the adult population, down from down 69.2% in 2004. A Harris Interactive polls says 70% of Americans aspire to homeownership, down from 77% a year ago.
The economic downturn and stricter mortgage standards are driving much of that decline, but economists say there’s also a growing belief among many that they can live better by renting rather than straining their finances to buy a house.
The National Association of Realtors has reported that only 33% of home sellers are looking to purchase a home.
This is good news when considering the cycles of a market cycle since it means that capitulaton is beginning to happen. And that is something that precedes a market bottom.
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