WHO WILL LEAD THE PACK When the Housing Market Rebounds (as You Know It Will)?

By
Real Estate Agent with Dean's Team - Keller Williams Realty Partners Chicago IL

Let's think OPTIMISTICALLY, folks!

One day, hopefully, one day soon - the U.S. Housing Market will come roaring back!  (Remember - think positive!)

When that day comes, and when inventory begins to fall, prices begin to stabilize, and those sheets of plywood come some off those houses across the Portage Park,  Englewood, and Garfield Park Neighborhoods in Chicago - who will be leading the way back, and doing most of the resurgent buying?

Research by Mintel International Group suggests minority home buyers - Hispanics, African-Americans, and Asians - will lead the charge back.  So will a group they call "Echo Boomers" - those under 30 who are the children of we Baby Boomers. 

Many from these demographic groups missed our last Housing Boom of a few years ago because prices escalated so quickly.  With prices now lowered, many here will attempt to make their move.

According to Mintel research, these groups are not only fast growing, they are very eager to buy homes.  Although only 23% of the general population surveyed plans to purchase a new home within the next five years, the intent is far stronger among younger adults and minority buyers.

Of course, these new buyers must meet today's new, highly-strengthened loan standards - standards unlikely to loosen much within the next five years.  But their pent-up demand, alongside the resurgence of low-down-payment FHA Loans for those with not-perfect credit, may provide the road map to home purchase.

Susan Menke, Senior Financial Services Analyst with Mintel, suggests lenders and home builders focus on these demographic segments as the housing market rebounds.

See our post today @ BlogChicagoHomes.com for more, as well as a link to Mary Umberger's column in the Chicago Tribune on October 5th.

DEAN & DEAN'S TEAM CHICAGO

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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Dean,

Are you getting ready? On a serius note, it gives food for thought. Different age groups will be more pronounced in the market, and it will affect our interaction.

Until then, let's get through with minimal damage, and maximum gain.

Oct 16, 2008 03:47 PM #1
Rainmaker
554,164
Ken Tracy
Keller Williams Realty Infinity - Naperville, IL
Helping clients buy and sell since 2005

Hi Dean.  Great point.

I have been considering brushing up on my Spanish.  They are the fastest growing demographic.

Young people?  Hopefully I am still hip enough to connect with them.

Thanks for writing,

Ken

Oct 16, 2008 03:48 PM #2
Rainmaker
212,573
Jennifer Monroe
Savvy + Company Real Estate - Charlotte, NC
Real Estate REALTOR®/Broker in Beautiful Charlotte

Very interesting perspective Dean. I suspect this projection will be true in most urban areas. My biggest concern is the challenges these demographic groups will face as the lending requirements grow more stringent. Younger americans are so accustomed to having it 'now', that the work of saving and showing restraint may be their undoing. Let us hope not.

 

Oct 16, 2008 03:55 PM #3
Ambassador
3,507,278
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I'm with Jon!  However, I do think that lending criteria will continue to tighten and will make it a bit tougher for youger homebuyers to purchase as early as we did; then again, you can look at it from the glass-half-full perspective:  They'll be TRUE qualified buyers when they ARE qualified!

Great perspective!

Debe in Charlotte 

Oct 16, 2008 04:14 PM #4
Rainmaker
262,033
Mara Hawks
First Realty Auburn - Auburn, AL
Inactive-2012 REALTOR - Homes for Sale Auburn Real Estate, AL

Interesting forecast... I'm very trusting of the positive rebound...

Oct 16, 2008 04:25 PM #5
Rainmaker
368,263
Dean Moss
Dean's Team - Keller Williams Realty Partners Chicago IL - Chicago, IL
Dean's Team Chicago IL Real Estate Team

Hey, gang -

Thanks for all your comments.

It will be interesting to see if lending standards relax just a bit as the market improves.  As competition increases, will lenders be tempted to again let their guard down?

I don't think it will spiral out of control like it has now (hopefully, anyway), but things might get a bit "creative."

You think?

DEAN & DEAN'S TEAM CHICAGO

Oct 16, 2008 05:27 PM #6
Rainmaker
57,704
Scott Barr
Pacific Sotheby's international Realty - Newport Beach, CA
Realtor

I just added a couple from the Echo group today. So what you are saying has a ring of truth to it.

Oct 23, 2008 06:52 PM #7
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Dean Moss

Dean's Team Chicago IL Real Estate Team
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