|
1. |
Household
formation – High unemployment and
underemployment rates means more people are
moving back home, doubling-up or renting,
particularly in the 25-34 years |
|
 |
|
2. |
Overbuilding
and housing starts – Right now there is a
massive inventory of housing, thanks in part to
too many houses being built to meet demand.
Housing formation rates are around 1.2 million,
but building is closer to 2 million. Thanks to
tighter loan standards, there are also fewer
qualified buyers out there to meet the demand. |
|
3. |
Single family
home sales – As a result of the amount of
distress sales, price-conscious home buyers are
gravitating towards foreclosure re-sales and
short sales where prices are lower to better
suit their new household economics. More
expensive new homes with big price tags no
longer are in hot demand. |
|
4. |
Home prices –
Home prices have to reach a level where people
can afford their mortgages once again. |
|
5. |
Homeownership
rates – Homeownership rates will continue to
drop due to toxic mortgages and foreclosures and
high unemployment. |
|
100318 __ +Recent
Reviews _ 5 FACTORS_AFFECT RE SALES |
