Short List
Homeownership Declines
The U.S. homeownership rate slipped for the ninth year in a row in 201213, edging down slightly to 65.1 percent, according to a report by the Joint Center for Housing Studies of Harvard University. The number of homeowner households also fell for the seventh straight year with a drop of 76,000.
These declines are the smallest reported since 2008, suggesting that the bottom may be in sight. But homeownership rates for all age groups between 25 and 54 are at their lowest point since recordkeeping began in 1976, while homeownership among households aged 75 and older is near a record high.
A Growing Market
A REALTOR.com study finds that the national housing market is growing stronger, with median list prices up 7.6 percent in June compared to last year. Month-over-month price acceleration was slower compared to April, however, and housing inventory is similar to June 2013 levels. But homes in June sold 5 percent faster than last year.
National housing trends are masking some of the excitement were seeing in individual markets, says Jonathan Smoke, chief economist for REALTOR.com. June data shows monthly inventory picking up in markets already experiencing price increases and fast property turnover. These dynamics will extend the buying season to later in the third quarter.
Financial Matters
Eighty-eight percent of homebuyers financed their recent home purchase, according to the NAR Profile of Homebuyers and Sellers. Among those who financed their home purchase, buyers typically financed 90 percent.
The share of first-time buyers who financed their home purchase was 95 percent compared to 86 percent of repeat buyers. More than half of homebuyers reported they have made some sacrifices to afford a new home, such as reducing spending on luxury items, entertainment or clothing.
Twenty-four percent of buyers reported the mortgage application and approval process was somewhat more difficult than expected, and 16 percent reported it was much more difficult.
