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Who will the boomers sell their homes to?


               
2012 Nov 28, 1:08am   29,119 views  79 comments

by Goran_K   follow (4)  

Over half of new college grads unemployed and in heavy debt
http://www.americanthinker.com/2012/11/approaching_crunch_time_on_the_student_loan_debacle.html

The FY 2009 three-year default rates -- which the Department views as more indicative of ultimate defaults -- was 13.4%, essentially the same as the 13.8% for the FY 2008 cohort. In private non-profit institutions, the three-year default rate was 7.5%, at public institutions it was 11%, and at private for-profit colleges it hit 22.7%.
There were 218 schools that actually managed to produce students who had three-year default rates of over 30%, and 37 schools that had rates over 40%!
As bad as these stats are, remember that they do not count borrowers who were allowed to postpone payments due to unemployment or other hardships.
Given that over half of all recent college grads are unemployed (or employed only at jobs not requiring a college education), we can expect those default rates to rapidly rise.

Also take into account median household debt is STILL twice as much as it was in 2002-2003, and that's after years of loan mods, refinancing, etc.

High debt.
No job prospects.
Possible bad credit from default.

Will this generation actually be able to buy homes anytime soon?

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77   zesta   2012 Dec 3, 2:11am  

Goran_K says

zesta says

Your Center for Economic and Policy report was released in FEB 2009! A lot has changed in 3+ years, C/S is reporting 6 consecutive months of gains and underwater homeowners are trending downwards. That 3.5m in Dec 2011 is probably less now.

Nope. Not much has changed:

http://www.housingwire.com/news/monday-morning-cup-coffee-homeowners-over-50-fall-foreclosures

Wow, newsflash! More delinquencies and foreclosures in 2011 compared to 2007.

In case you haven't noticed we're in Dec 2012. Do you think there were more foreclosures of people over 50 in 2009 or 2012?

78   Goran_K   2012 Dec 3, 2:26am  

I think over the past 3 years, not much has changed to improve boomer situations. :)

79   mdovell   2012 Dec 3, 2:47am  

They might not want to sell but it might depend as to how large their bills are and in particular medical bills. Medicare does not pay for everything and social security is not an investment vehicle.

You also have to wonder how much in the way of larger items might be sold off. Boats, 2nd or 3rd cars, motorcycles. Perhaps reminiscent of larger/encompassing hobbies. Coin/comic/stamp collections, collected artwork, higher end audio vision (hello dirt cheap Tivoli!) Certainly some might be donated to libraries (books, music, video) or museums (art or anything historic) but there is only so much to go around.

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