Why All the Chicken Littles Should Calm Down About the Housing Market
The U.S. Census Bureau recently released their 2019 Q2 Homeownership Report. Some began to see the sky falling, believing the report showed Americans may be stepping back from their belief in homeownership.
The national homeownership rate (Americans who owned vs. rented their primary residence) increased significantly during the housing boom, reaching its peak of 69.2% in 2004. The Census Bureau reported that the second quarter of 2019 ended with a homeownership rate of 64.1%, which is down from the 64.8% rate for the fourth quarter of 2018. Based on this news, some started to question the consumer’s belief in the idea of homeownership as a major part of the American Dream.
Everyone Calm Down…It is true the homeownership rate did fall. However, if you look at the national rate over the last 35 years (1984-2019), you can see that the current homeownership rate has returned to historical norms. The 64.1% rate is equivalent to the rates in 1984 and 1994.
What Will the Future Bring? Part of the reason the homeownership rate slipped is a lack of inventory available for purchase for first-time home buyers. The demand is there, but currently, the supply is not. It seems, however, that is about to change.
In a recent report, Ivy Zelman explained that builders have finally started to increase the number of homes they’re constructing at the lower-end price points:
“Robust growth in the entry-level price point of late should translate to a reacceleration in homeownership rates moving forward.”
Today, the homeownership rate sits at historic norms. In all probability, it will increase as more inventory becomes available. There is no reason for concern.
Leisure Village Real Estate Market Update
Homes for Sale in Leisure Village:
10 Steps to Buying a Home this Summer
- If you are thinking of buying a home, you may not know where to start.
- Here is a simple list of 10 steps that you will go through to purchase a home.
- Make sure to ask your agent for details about each step and what else may be required in your area!
Leisure Village Newport Model sold the 1st Day on the Market!
When you want your Leisure Village home SOLD quickly in this Buyer’s market, Call Sharron Parker 805-443-1998, Leisure Village Specialist!
What is the Cost of Waiting Until Next Year to Buy?
- The “cost of waiting to buy” is defined as the additional funds necessary to buy a home if prices & interest rates were to increase over a period of time.
- Freddie Mac forecasts interest rates to rise to 4.5% by the Q4 2020.
- CoreLogic predicts home prices to appreciate by 4.8% over the next 12 months.
- If you are ready and willing to buy your dream home, find out if you are able to!
To learn more about Leisure Village, please visit: https://wesellleisurevillage.com/about-leisure-village/
Check out the calendar of activities in Leisure Village,
Camarillo CA.: www.iloveleisurevillage.com/leisure-village-activities-calendar/
Thinking of moving to Leisure Village, Camarillo CA.? Here are
the current homes for sale: www.iloveleisurevillage.com/homes-for-sale-leisure-village-camarillo/
To learn more about me, please visit:
www.iloveleisurevillage.com/leisure-village-camarillo-ca-sharron-parker-realtor/ and www.iloveleisurevillage.com/about-sharron/