It could be a buyers' market for years to come. In addition to the pending foreclosures that will continue to depress home prices when they hit the market, many experts predict baby boomers will begin flooding the market with homes for sale. Meanwhile, many younger potential buyers are hesitant to become homeowners and are renting instead.
A report by the Bipartisan Policy Center says as boomers downsize, approximately 26 million homes will come on the market by 2030. But younger generations are stymied by unemployment, tight credit, higher levels of debt than their parents and loss of confidence caused by the housing bust.
The report points to the Northeast and Midwest as areas that will feel the effects the most, and says it's already happening in some states hard-hit by the recession, such as Michigan.
But not everyone is worried. Walter Maloney, of the National Association of Realtors, told CNBC that boomers unloading their homes will not have a big effect on the market because there is still pent-up demand for homes. In fact, the number of homes on the market has declined by almost half what it was a year ago. Greg McBride, CFA, senior financial analyst at Bankrate, says there are still plenty of foreign buyers interested in U.S. properties and cautions against predicting whether seniors will have an effect on the housing market in the coming years.
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