Home Ownership Drops Significantly for First Time Buyers
Home ownership is down and the hardest hit are the young and first time buyers. In Steamboat Springs, we’ve seen two back to back years with over 300 foreclosures in Routt county. In 2011, 23% of the total transactions were bank owned or foreclosed properties. Yes, people are buying these foreclosures, but home ownership drops significantly for first time buyers and those under 40.
Upon a closer look, not all age groups had similar experiences throughout this cycle. Those under 25 and over 65 were mildly impacted. Largest hit were people in their 30’s and I’d assume many were first-time buyers. That group now has home ownership below the marks of 2000, well below the height and housing bubble of 2005.
The home ownership rate for 2010 was 66.9%, down from 67.4% in 2009. And 2011 will be down as all. Because home ownership dropped significantly for first time buyers, it might be a while before we see this group re-enter the housing market. Much of this will rely on employment numbers both local and national.
Overall, owning real estate is still very beneficial and attractive. And I do believe we will rebound from these drops in home ownership. Foreclosures and short-sales in Steamboat Springs and the nation are stabilizing. And with 23% of 2011 transactions in Steamboat being bank-owned, these distressed properties are being purchased by new home owners. So even though home ownership had dropped significantly for first time buyers, people are taking advantage of these deals and becoming home owners.
I’m optimistic. If you have any specific questions regarding home ownership, or you’re thinking about becoming a home owner, feel free to give me a call anytime for some earnest advise.