Stagnant moving rates and continued plummeting home sales indicate boomer homeowners aren’t going anywhere anytime soon.
Fitch Ratings estimates home prices will fall an additional 12.5 percent from 2008′s year end values before exhibiting more stability in late 2010, according to analysis released Thursday. This forecast reflects a reversion to early 2002′s prices. Currently, prices are hovering around levels seen in mid 2003.
According to census data, the number of Americans moving to another home declined from 13.2 percent in 2007 to 11.9 percent last year.
“It was the sharpest percentage drop in US mobility since the 2000 bursting of the tech bubble, which bankrupted many Internet start-ups and caused the dwindling of stock portfolios,” according to Thursday’s Associated Press. “The number of people moving has been declining for decades – more recently because of an aging baby boomer population that is less mobile – since hitting a peak of 21.2 percent in 1951.”