We’re in the midst of a reset in the real estate market cycle. Every market is different, and we’ve been seeking “new normal” for quite some time.
Here’s part of the new normal, not just in the Charlottesville real estate market, but across society as well. (search for “new normal” on RealCentralVA for context)
The buyers who would buy and sell in a zero to five year timeframe are gone. In other words, the stepping stone of the “buying a home” lifecycle has been pushed further.
First time homebuyers, when they do choose to buy, are buying at later points of their lives – once they’ve established themselves in their careers* and found their mates if they so choose, and have determined that their lives – kids on the way, jobs â€¦ some sort of stability.
Many of these first-timers have either seen their friends and families decimated by the housing market or have experienced it themselves in selling or trying to sell – either normal transactions, short sales or foreclosures.
A report last fall indicated that student debt in America had reached $850 billion, nearly $25 billion more than the nation’s consumer credit card debt load.
Homeownership is a long-term decision. Given the choice – which are the next (current) generation of homebuyers going to choose –
Higher education or a home of their own?
The new normal, for the foreseeable future, is one without the 0-5 year buyers, one with an extended lifecycle of homeownership. And you know what? If we can just get the government to get the hell out of the way – stop making secret loans to banks, stop toying with being landlords, stop catering to the banks, stop trying to manipulate mortgages, and let the market work.