Will your house hold its value this next decade?

Taking a look into the future, will your house hold its value as A. a financial investment and B. as a good place for you to live during the next decade? To answer these questions buyers and owners need to be watching four trends.

• Echo boomers' entry into their peak home-buying years.
• Baby boomers' entry into their peak home-selling years.
• The new demand for smaller homes.
• The new demand for more energy-efficient homes.

The current demand for housing is at a low due to unemployment and other financial pressures. Steve Melman, director of economic services at the National Association of Home Builders (NAHB), expects a resurgence to occur as economic conditions improve and the children of the baby boomers, called echo boomers, enter their peak home-buying years.

When the echo boomers start buying up houses the demand may not be able to match up to the supply. Dowell Myers, a professor of urban planning and demography at USC says that, "Before, there was an unlimited supply of buyers because of the baby-boom generation. But now that unlimited supply of buyers is going to turn into an unlimited supply of sellers."

A new trend that may also start to emerge is the one of smaller, more compact, and more energy efficient homes. Due to the increase of empty-nesters, purchases of smaller homes, more suitable for them, are likely to increase. Smaller homes are also cheaper and easier to maintain and should be less costly to heat and cool.

Credits to:
Bankrate.com

Thomas Feng, Realtor
Thomas.Feng@CBnorcal.com

Copyright 2010 by Thomas Feng, All Rights Reserved. You may reblog or republish with links back to this post.

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