Remember when everyone used to say that homeownership was the only way to go?
Despite the downturn, many people would still agree with the benefits of homeownership. But if we look at some numbers, like those of national housing analyst John Burns Real Estate Consulting, we’ll will see estimates that 6 million of the 8 million homeowners who are behind on their mortgages will lose their homes to lenders in the next two years.
Do we still see multitudes of short sales and foreclosures on the horizon?
All of these distressed homes threaten to send homeownership to its lowest level in 50 years, according to new industry estimates. The newest projections report that the rate could dive to about 62% as early as 2012 and almost certainly by the end of the decade.
Homeownership rates haven’t been that low since they hit 61.9% in 1960.
The share of households that own their homes has been sliding since the housing bubble burst in 2006. The rate fell again in the second quarter of this year to 66.9% — the lowest since 1999 — from a peak of 69.4% in 2004, the Census Bureau says.
Certainly some people who purchased homes in the past years had no business jumping into homeownership but now the slide can be attributed to many things including more stringent (sometimes overly stringent) financing requirements and a shaky job market.
Now think about all of the people losing their homes to foreclosure or selling via short sale, someone else sits at the doorstep waiting to scoop up a good deal.