Is anyone surprised that owner occupied huoseholds were a record high in 2004? Are you surprised that rental households were at an all time high in 2007? This is no more true than in the Central Valley of California.
Tracy and Mountain House have seen not only a steep decline in values, but a surge in rental vs owner occupied homes. First time home buyers are purchasing homes, however the number of investors that are purchasing homes to use as a rental is staggering.
Look closely at the yellow line, are we still on a decline? The chart shows record number of home owners are pursuing short sales and choosing to allow their once owner occupied home to go to foreclosure.
I wonder if in 5-7 years when all these households can purchase again will see a huge surge in home ownership again, or will these households be content to rent?
What goes up must come down, and what goes down MUST it come up?
Where is the stopping point? Can our country's housing crisis be fixed? How long will this "recovery" take?