How Will Foreclosures Affect the Future of Home Buying?
One of the results of the foreclosure problem is that millions of consumers will not be able to own a home for up to 7 years. Those who have foreclosed may find themselves eligible years earlier, but without the means to become a homeowner again. As we can see today, the problem of foreclosures has still yet to be rectified.
So, What Does the Future Look Like?
Well, for the next few years, there will have to be a lot more consumers renting rather than buying. In 2003 and 2004, 69% of Americans were homeowners. Today that number has dropped to almost 67%. That’s a reduction of almost 2.6 million households in 6 years, and that number is likely to increase to 7.8 million homes by the year 2015. That’s a lot of homes without owners.
More than Just Foreclosures
What makes these predictions more likely is the fact that our nation's adult population is decreasing in average age. When this happens, homeownership naturally declines. The last time this demographic shift occurred was in the early 80’s.
What’s a Homeowner to Do?
While the answers aren’t clear for everyone, knowing where you stand with your current mortgage always helps. Making the right choice is always easier when you have the right information in front of you.