How homeownership has changed : Rooftop Views

Rooftop Views

How homeownership has changed

In a study commissioned by Coldwell Banker, Harris Interactive polled 25,000 US homeowners who make over $75,000 a year to try to determine homeownership trends. We'll discuss these trends over several days. Today we'll look at the difference in homeownership.

The Greatest Generation (ages 61 and up) have owned a total of between 2-5 homes in their lifetime. Compare that to Baby Boomers who have also purchased between 2-5 homes. As the homebuyer gets younger, the trend appears that the numbers will go up. Already those between the ages of 25-41 have owned between 2-5 homes. 58% of them have already owned more homes than their parents did at a comparable age.

According to the survey, homeowners are moving because of lifestyle changes, not necessarily just to purchase a bigger and better home. In fact 53%, when asked if they would move to "get more home for the money", answered no.

What do these statistics indicate. For one thing, today's home buyers are not thinking they will actually stay in their current home long enough to pay off the mortgage. Adjustable rate mortgages and other variable rate loans do not concern them. Chances are they won't be in the property long enough to experience the steep adjustments in interest rates that concern economic forecasters today.

In our business, we used to say that our clients would move every 7 years. This number has now decreased. That indicates a more constant turn over of inventory as people continue to change homes.

Home buyers are moving for "lifestyle changes". That may mean the addition of children. All home buyers we know that have children are interested in the school systems where they plan to purchase. Since all local schools in Colorado must make public their standardized test scores (CSAP), school districts that don't do well will effect the ability of home sellers in their districts to attract home buyers.