By Daniel Duffield
The percentage of Americans who own their residences
decreased to 65% during the first quarter of 2013, falling from the 65.4%
figure for the first quarter of 2012 and reaching the lowest rate of
homeownership since 1995, the Census Bureau indicated today in a report. In
terms of vacancy, the vacancy percentage for rented homes decreased from 8.8% a
year previous to 8.6% during the first quarter of 2013, while vacancies for
owner-occupied properties decreased from 2.2% to 2.1% over the same time
period.
Presently, investors are purchasing up single-family homes
in order to rent them out and take advantage of the high demand created by
families who cannot meet the strict qualifications for mortgage loans. These
investment home purchases,
a considerable amount of which are funded in cash, have aided in the
strengthening of the housing market and been a major cause of the upward
pressure applied to home values.
According to statements made by Paul Diggle, a real estate
economist for Capital Economics in London, in a phone interview, lending
conditions remain severe, and with borrowers being unable to secure mortgage
loans, investors have rushed into capitalize on this demand while it lasts.
Diggle further stated that homeownership will persist in its
decline during the remainder of 2013. In terms of homeownership highs, U.S.
homeownership reached its peak during the housing boom at 69.2% in June 2004,
at which time credit
requirements were fairly loose, especially by comparison with today’s standards.
Jed Kolko, chief economist for Trulia, Inc., said that
homeownership has primarily been affected by restrictive credit standards, a
shrinking housing inventory, the increased difficulty for borrowers to save for
down payments, and the abundance of single-family rental properties.
In March, the amount of properties put up for sale in the
housing market decreased 16.8% from the previous year, according to a statement
from the National Association of Realtors (NAR).
During the first quarter of 2013, the amount of occupied
homes rose to approximately 114.6 million compared with 114.1 million in the
first quarter of 2012. Moreover, the number of rented properties increased to
40.1 million from 39.5 million a year previously. Owner-occupied properties
declined from 74.6 million to 74.5 million.
Home Prices Increase
Across the U.S.
Amidst the decline in homeownership, U.S. home prices
continue to rise, signaling success in the ongoing housing recovery effort. In
February, home prices saw the most prominent increase since May 2006 during the
real estate boom, further demonstrating housing market strength.
According to the S&P/Case-Shiller index, home values in
20 cities increased a considerable 9.3% from February 2012 levels, exceeding
expectations after an 8.1% growth during 2012. Additionally, compared with
January 2013, home price increases reached a 7 year peak, seeing the most significant
rise since October 2005. While mortgage rates remain just
above all-time lows, analysts expect these price gains to fuel more selling
activity, which could lessen the scarcity of housing inventory.
Ultimately, however, experts state that year-over-year data
tends to be more accurate in assessing trends of home prices. For the second
consecutive month, all 20 cities measured by the index saw a year-over-year increase
in prices. As such, the housing market recovery seems to be having some
success, although some analysts have expressed concerns over the formation of a
new housing bubble.
About Me
Lead Content Developer of Lender411. Please add my Google profile to your circles.
Posts
No comments:
Post a Comment