How you doing, folks!
Here in Chicago, the cool weather just won't go away! Still gray, damp - in the 50's!
This U.S. Census Bureau Statistic should not surprise you, in today's weak economy -
Between 2007 and 2008, only 12% of the American Population moved from one house to another. That figure represented the lowest mobility rate nationwide since back in the 1940's - and a very significant 1.3% drop versus 2006-07!
According to Cheryl Russel, Editorial Director for New Strategist Publications, as quoted in Mary Umberger's Real Estate Column in the Chicago Tribune last Sunday, May 24th, the historical average for mobility each year has hovered at roughly 14%.
Our most mobile post-war year - 1950-51, when 21% of the U.S. Population moved from one house or apartment to another.
The last sizable drop in annual mobility occurred ten years ago, in 1999. At that time, many lost considerable savings and investment dollars during the Internet dot com downturn. This time around, many investors had their savings depleted considerably by the downturn on Wall Street. Tighter loan underwriting standards also prevent many from getting the mortgage money they need to move.
Two factors likely impacting migration and mobility? First, the rise in two-earner households. Families would likely move less often if jobs for both working spouses could not be assured.
Second, homeownership, by historic standards, is at a record level. Those owning their homes move far less often than those who rent.
Further information gathered by the Census Bureau -
- The biggest reason respondents gave for not moving - not wanting to buy a home. The number of people desiring to purchase a new home declined 48% since 2001.
- As people put off retirement, fearing their retirement savings will not last them long, these older-demographic homeowners are staying in their long-time homes, and delaying purchasing assisted-living or similar housing geared to older Americans.
- Many respondents have diminished new home expectations. Today, most people move because they are looking for a cheaper home. In the past, many were looking for a larger, better home.
Of course, mobility trends could change quickly, with a housing market turnaround. But exactly when will the turnaround happen? Tough to truly predict!
Please read our post today via BlogChicagoHomes.com.
DEAN MOSS & DEAN'S TEAM CHICAGO