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Pent-up demand from boomerang buyers may not materialize

By golfplan18   2012 Nov 13, 10:58pm   ↑ like (3)   ↓ dislike   1,277 views   6 comments   watch (0)   share   quote

A big part of the bullish sentiment toward real estate is the believe that former owners who lost their houses in foreclosure will return in droves to mop up the supply of shadow inventory and push prices higher. But what if they don’t come back? What if they were so burned by the experience that they choose a lifetime of renting instead? A recent study from the federal reserve suggests this may be the case.


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1   Oil Can   2012 Nov 13, 10:59pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

Yes, I think some of these people should have never purchased a house

2   The Professor   2012 Nov 14, 12:12am  ↑ like (1)   ↓ dislike   quote   top   bottom   home   share  

Billybigrig says

Agreed, as the old adage goes water seeks it's own level ...

Too bad all of those underwater mortgages don't float.

3   gbenson   2012 Nov 14, 4:58am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

I have relatives that won't be boomeranging, ever.. Now that they have a taste of just picking up the phone and telling their apartment manager "come get the sink unclogged", they have no intention of buying again. They won't even buy a new washer and dryer because they know if they rent one instead, when it breaks its someone else's responsibility now.

4   upisdown   2012 Nov 14, 5:09am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

We saw this a few years back, as the elderly sold off their biggest and last asset, and then either moved in with their boomer-aged children, or rented. For practically all of them, they can't or won't outlive their money and need an easier day-to-day life. It's a hell of a lot cheaper than an assisted living center or retirement home.

5   The Professor   2012 Nov 14, 6:22am  ↑ like (1)   ↓ dislike   quote   top   bottom   home   share  

Billybigrig says

Sounds All American like apple pie, Chevy Trucks & the Waltons

G'night Billy.

That was a whole different time in America.

When the Waltons were on you could apprentice your way into a job where you could afford a house.

A 70's show about how great it was during the depression.

6   RealEstateIsBetterThanStocks (31/31 = 100% civil)   2012 Nov 14, 3:23pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

we'll see a stock bubble before we see another housing bubble.

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