Categorized | Residential

Homeownership in United States Hits New Low

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The overall homeownership rate in the United States fell to its lowest level in fifteen years last month. The rate dropped one percent from one year ago, and is now just over sixty-five percent.

 

The decline in the homeownership rate can be attributed to the strong rental market, as well as the increase in foreclosure rates. At just over sixty-five percent, the homeownership rate dropped by more than a half percentage point since December.

 

The rate was at its highest in 2004 during the housing peak. At that time, it was just over sixty-nine percent. However, economists believe that number to have been artificially inflated, as many people had not even paid a down payment towards their home.

 

Although the homeownership rate is down when compared to previous quarters, many economists believe that it is still rather healthy. Many have stated that any number above sixty-four percent and under sixty-nine percent would be considered healthy. If the homeownership rate, however, drops below sixty-four percent, then there is cause for alarm.

 

The percentage will likely increase after the next quarter, as pending home sales are hitting the highest point in at least a year in most cities. Prices are also falling slower than anticipated, leading many economists to grow even more positive about the state of the market.

 

While it was, for some time, looking like the market was impenetrable even by those with good credit, things seem to be changing with the market getting healthier. It is now possible to secure a mortgage loan as long as you have good credit, a decent down payment, and a solid job.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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