“U.S. homeownership rate rose again, signaling great strength in the recovery of the housing market and an indication that even in a time of crisis, Americans still feel confident about buying a home.”
So far, it’s been quite a ride this year, and our nation has truly seen its fair share of hurdles. From COVID-19 to record unemployment and then the resulting recession, just to name a few, the second quarter of 2020 has had more than a few challenges. Amidst the many roadblocks, however, the U.S. homeownership rate rose again, signaling great strength in the recovery of the housing market and an indication that even in a time of crisis, Americans still feel confident about buying a home.
Yesterday, the U.S. Census Bureau announced:
“The homeownership rate of 67.9 percent was 3.8 percentage points higher than the rate in the second quarter 2019 (64.1 percent) and 2.6 percentage points higher than the rate in the first quarter 2020 (65.3 percent).”
The increase is also represented by race and ethnicity of the householder:There are many reasons why the homeownership rate in this country is rising, and one of the key factors is historically-low mortgage rates. Rates hovering at all-time lows are helping to drive affordability and enabling more potential homeowners to enter the market today. According to Ralph McLaughlin, Chief Economist for Haus:
“Mortgage rates are the icing on the cake for households that were thinking about buying…They found an unexpected opportunity during the worst economic downturn America has seen since the Great Depression.”
In addition, many potential homebuyers have been using their time this year to search for homes that offer more space than their current rental apartments. Many of these homebuyers are younger and, as noted by Odeta Kushi, Deputy Chief Economist at First American, are the buyers driving the homeownership rate in an upward direction:
“Big jump in the homeownership rate today, mostly driven by younger households. We saw a spike in the number of owners, and a decline in the number of renters. This is the highest rate of homeownership since 2008.”
This growth is outstanding news for the housing market and for those who have recently found their new homes. If homeownership is on your shortlist this year, maybe now is a great time to meet with a real estate professional to evaluate your current situation. Perhaps historically low mortgage rates can help you to become a homeowner too.
Bottom Line
If you’re thinking of buying a home this year, let’s connect today to take your dream one step closer to reality.
___
Announcement from the census: As a result of the coronavirus pandemic (COVID-19), data collection operations for the CPS/HVS were affected during the second quarter of 2020. In-person interviews were suspended for the duration of the second quarter and replaced with telephone interview attempts when contact information was available. If the Field Representative was unable to get information on the sample unit, the unit was made a Type A no interview (no one home, refusal, etc.). See the FAQ for more information.
To view original article, visit Keeping Current Matters.
The Majority of Veterans Are Unaware of a Key VA Loan Benefit
VA home loans are designed to make homeownership a reality for those who have served our country.
Renting vs. Buying: The Net Worth Gap You Need To See
If you’re on the fence, it may be helpful to speak with a local real estate agent. They can help you weigh your options.
Expect the Unexpected: Anticipating Volatility in Today’s Housing Market
Understanding what’s happening will help you make the right decisions, whether that’s buying or selling.
Is a Fixer Upper Right for You?
The perfect home is the one you perfect after buying it. With careful planning, budgeting, and a little bit of vision, you can turn a house that needs some love into your perfect home.
How Real Estate Agents Take the Fear Out of Moving
Real estate agents are trusted guides to help you navigate the complexities of the housing market with confidence and ease.
Why Home Sales Bounce Back After Presidential Elections
As has been the case before, once the election uncertainty passes, buyers and sellers will return to the market.