More Families Chose to Own a Home Than Rent in Q1
More Families Chose to Own a Home Than Rent in Q1:
According to the latest report from the US Census Bureau, more families chose purchasing a home over signing a lease to rent in the first quarter of 2017. This marks the first time since 2006 that the number of new homeowner households outpaced the number of new renter households.
Of the 1.22 million new households that were formed in the first quarter, 854,000 were new-owner households making the jump straight to homeownership rather than renting first.
That means that the homeownership rate amongst new households was 70%!
This is huge news as the national homeownership rate is currently 63.6% and has only ever come close to this figure in the second quarter of 2004 when the homeownership rate reached an all-time high of 69.2%.
A recent Wall Street Journal article pointed to the uptick in first-time homebuyers coming to market as a reason for the jump:
“The return of first-time buyers is accelerating. In all they have accounted for 42% of buyers this year, up from 38% in 2015 and 31% at the lowest point during the recent housing cycle in 2011, according to Fannie Mae, which defines first-time buyers as anyone who hasn’t owned a home in the past three years.”
More Families Chose to Own a Home Than Rent in Q1
Ralph McLaughlin, Trulia’s Chief Economist, had this to say about what a bump in new homeowner households could mean for the housing market:
“Strong renter household formation is one of the reasons why the homeownership rate has continued to drop since the onset of the housing crisis, so any sign this trend is reversing is something to take note of. We look forward to future releases of these data to determine whether this is a statistical blip or a trend.”Bottom Line
As more and more potential first-time buyers realize their ability to buy a home without having to rent first, not only will the homeownership rate benefit, but so will the overall economy.
[afview limit=10 title=”Affinitomic Relationships:”]
How Natural Disasters and Low Inventory Impact Selling Your Home Today
That headline might be a little aggressive; however, as August 2017’s housing market data begins to roll in, we can definitely say one thing: If you are considering selling, IT IS TIME TO LIST YOUR HOME TODAY!
Net Worth of US Homeowners is 44 Times Greater than Renters
As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth by increasing the equity in your home.
5 Steps to the Home Mortgage Process
Take advantage of the knowledge of your local REALTORS® professional network to determine how much you can afford.
Two Tips to Get the Most Money From the Sale of Your Home
Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensure that you get the highest price possible.
These Homes Have Gained The Most Value
It is important to pay attention to how prices are changing in your local market. The location of your home is not the only factor in determining how much it has appreciated over the course of the last year.
Freedom and Control Are Top Reasons Millennials Choose To Buy
Many millennials who rent a home or apartment prior to buying their own homes. They dream of the day that they will be able to paint the walls whatever color they’d like. And, of course, renovate an outdated part of their living space.
Millennials Say Homeownership is A Reflection of Hard Work
Despite some claims that homeownership’s importance to the American Dream is in decline, the report found that the dream of homeownership remains strong.
14,904 Homes Sold Yesterday… Did Yours?
There are some homeowners who are patiently waiting to get the price they hoped for when they originally listed their houses for sale.
Top 5 A+ Reasons to Hire a REALTOR
Hiring a real estate professional to buy your dream home, or sell your current house, is one of the most ‘educated’ decisions you can make!
Empty Nesters: Is It Better to Remodel or Time to Sell?
Your children have finally moved out and you and your spouse now live alone in a four-bedroom colonial (or a similar type of house). You have two choices to make:
Number of Buyers Putting Down Less Than 10% Hits 7-Year High
According to Black Knight Financial Service’s Mortgage Monitor Report, 1.5 million Americans have purchased a home with down payments under than 10% over the last 12 months.
Did You Know… 52% of Approved Loans Have A Credit Score Under 750?
The results of countless studies have shown that potential home buyers. Even current homeowners, have an inflated view of what is really required to qualify for a mortgage in today’s market.
Study: For Sale By Owners Don’t Save Real Estate Commission
One of the main reasons why For Sale By Owners (FSBOs) don’t use a real estate agent is because they believe they will save the commission an agent charges for getting their house on the market and selling it.
Why Is It Important To Use A REALTOR To sell Your Home?
When a homeowner decides to sell their house, they obviously want the best possible price for it with the least amount of hassles along the way. However, for the vast majority of sellers, the most important result is actually getting their homes sold.
California Homes Are Selling Quicker vs Nationwide Sales
Buyer demand is increasing as the inventory of homes available for sale remains low. If you are thinking about listing your home for sale this year, let’s meet up so I can help you take advantage of current market conditions!
Homeowner’s Net Worth Is Still Greater Than a Renter’s
Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups
What State Gives You the Most ‘Bang for Your Buck’? [INFOGRAPHIC]
The majority of states in the Midwest and South offer a lower cost of living compared to Northeast and Western states.
Hey, Millennial Homeowners!! It May Be Time to Sell
Millennials are not the ‘renter’ generation. Millennials purchased a larger percentage (34%) of homes in the U.S.