U.S. HOMEOWNERSHIP RATE HITS 48-YEAR LOWSource: Wall St. Journal
The homeownership rate continued to decline in the second quarter of 2015, hitting a 48-year low. The country is experiencing its lowest homeownership rate since 1967. According to the Commerce Department, the seasonally adjusted homeownership rate declined to 63.5 percent, down from 64.7 percent in the second quarter of 2014. However, it should be noted that the decline in homeownership reflects a positive trend: The number of rental households is growing.
This article from the Wall Street Journal confirms what many of us in California and Particularly Los Angeles have seen since 2014. Strong and ever climbing rents on top of an increase in price battles over home purchases is the economy we’re living in.
I thought this was a great graphic of buying goals of international investors of US real estate.
Unfortunately the increasing awareness of our society on environmentalism has done little to impact our decision making when purchasing a home…
Median home prices are up but the VOLUME of sales is sliding in California in 2015…are these signs that the frenzied buying is slowing down?
An interesting note about millennials is that, at a median income of $35,000 per year, it could take 10 years before a house purchase will be considered affordable, assuming a 20% down payment on a house in order to avoid personal mortgage insurance on a home mortgage.
For those who follow the affordability levels here in California will notice that house affordability is DOWN 2%…
- median home price: June 2014:
- Pending Home Sales Index:
June 2014: Decreased 2.8 percent from 110.1 in May to 107 in June.
Calif. Traditional Housing Affordability Index: Second Quarter 2014: 30 percent (Source: C.A.R.)
- California: $451,160
- Calif. highest median home price by region/county June 2014: San Mateo, $1.12 million
- Calif. lowest median home price by region/county June 2014:
Mortgage rates: Week ending 8/7/2014 (Source: Freddie Mac)
- 30-yr. fixed: 4.14% fees/points: 0.7%
- 15-yr. fixed: 3.27% fees/points: 0.6%
- 1-yr. adjustable: 2.35% Fees/points: 0.5%