The truth be told, no matter how long it takes the current housing crisis to recover, the real estate market will never be the same again. I'm not inferring that at some point foreclosures and short-sales will subside and the current inventory will be absorbed by the market. I'm not even saying that we won't see future market appreciation. What I am stating is, the events surrounding the current housing crisis will leave the next generation of home buyers scarred for many years to come.
Similar to the Great Depression, future generations changed their buying and spending habits dramatically for years to come. The housing market didn't show any signs of life until the Veterans returned from World War 2 and began creating the "Baby Boomer Generation".
During the past decade, home buyers purchased property with a mindset that it was a guaranteed appreciating asset. Many people bought and sold homes like it was the next hot stock. Well, we all know what happened with that strategy. It turned the "American Dream" into a "Nightmare on Elm Street".
Growing up in the Baby Boomer Generation gives me a unique vision of how history may repeat itself. My grandparents raised their families during the Great Depression and my parents had their childhood during those years. I witnessed my grandparent's austerity and lessons learned being passed on to my parents.
Even those in my parents generation that accumulated wealth, really didn't change their day-to-day lifestyles all that much. Though they could have lived a much more extravagant lifestyle, they remembered what my grandparents told them about the importance of saving as much as possible.
The next generation of home buyers will see how their parents and families were scarred by the current financial and housing crisis and will be much more cautious about home ownership. Buying a house will become more about "Home", "Security", "Pride of Ownership" and "Long Term Investment". Gone will be the days of buying real estate to make a quick buck.
Real Estate Agents will need to understand the fallout of the housing crisis and the influence it will have on future generation's buying pysche. For the next couple of generations, it will become more about buying a home than a house.
Comments(1)