The new status symbol is the free and clear home!

I am noticing the same trend in Southern Maryland. I keep encountering families who want to downsize and pay cash.

Isn't it an interesting trend?  Seems like we have moved from when the goal was to pay off your house as soon as possible - and certainly by retirement, to the times of buying a house with a 30 year mortgage when you were ready to retire - and now kind of back to acknowledging that not having a mortgage can be a really, really good thing! 

Richard,

I have known for years that I want an unencumbered deed.  It is the most compelling reason to buy and own.

I have seen folks in their 70's worried about making a house payment, and that is something we are working hard to avoid.

Good evening Richard,

Is it really a trend or have the media never brought up that close to 40% of homeowners already own their homes free and clear? It's the 60% that got messed up with their mortgages.

Many people cann end up with a free and clear home, at least in my area.  For those who do need a mortgage, buying less home and making a larger payment can accomplish free and clear relatively quickly.  Thanks for posting about this.

With the aging of the Baby Boomers, it's not a surprize that people are wanting less and staying with their paid off homes...........who knows what the economy will bring.  Good thought and post Richard

It's happening all over...affordability, low or zero debt are now the new trend.

Even developers of high rise towers are taking note and marketing their condos to the lower & middle class. 

For far too long the target market has been "high end" which is not sustainable over the long haul.

I'm noticing more cash buyers also. Downsizing is also the new normal. It's no longer just the retirees.

Richard...being more cautious is definitely a trend here also...my builders are no longer building the 4000+ square feet houses & have ratcheted it down...buyers are taking longer to decide and crossing their 't's vigilantly.  Have not found alot of the cash buyers in our area except for the investors right now.

Richard, I have a confession.  I had a small mortgage on my home when this housing mess started.  My lender (one of the big boys) was so horrible in a short sale I participated in that I paid off the mortgage and told them never to call me again.

It is appealing. Been looking at some two bedroom condos on the river...for $30,000. Hey, the sellers paid over $150K a few years ago, not bad!

My last two closings were cash deals.  So refreshing!

Scaling back of the size and stature of homes is a trend.  Not only cheaper to buy, but cheaper on all the utilities.

I think there is a very healthy trend away from huge houses and utility bills to more sustainable homes;  we are in the process of looking for land - for chickens, for gardening, for all sorts of "back to the basics" activities.  The downslide in the economy will result in a healthier lifestyle, I think, for many, many people. 

Richard - did you ever think you'd see some of the prices that are now out there?  I sure didn't!

This may be very true, for our buyers in Manhattan New York, many of them preferred prestigious addresses such is Fifth Avenue, Park Avenue, Central Park West and etc. It is the trophy property they desired.

I remember the house I grew up in:  a very modest home.  As kids, we didn't know from "big and fancy."  After the kids grew up . . . and out . . . my dad retired to the South France!  He had a long-term plan, I would say, and didn't have the mortgage noose around his neck!  GREAT post!!