Trulia Real Estate Search has published their most recent survey of consumer attitudes to home ownership completed in July. More than 90% of those surveyed said that their ideal home size today is less than 3200 square feet and one third say it is less than 2000 square feet. It seems that Americans are increasingly seeing less (mortgage, taxes, maintenance, utilities) as more (peace and cash flow). The era of the McMansion (where the foyer is usually larger than the living room) is over. Long live the comfortable, humbler, greener, less-indebted abode.
The era of the 'cash-out mortgage' where people saw their houses as ATM's has given way at last to the era of the 'cash-in mortgage' where people are focused on paying down their mortgage with accelerated payments and lump sums where ever possible. See Cash-in refis soar.
And finally there is serious talk about the need for government to stop trying to arrest the decline in housing prices. See Experts: U.S can no longer afford housing tax breaks.
What the housing market really needs to clear excess supply is lower prices so that real people can afford to buy them at regular, healthy-economy, interest rates. Trying to backstop and rescue this market from its necessary correction has impeded the recovery, not helped it. Governments, for the love of Pete, STOP trying to “fix” housing!
Cory’s Chart Corner
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