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homeownership bubble: Census: Homeownership Rate 67.4% in 2Q - 07/26/09 10:39 PM
The Census Bureau recently published their second quarter report on residential vacancies and homeownership rates which showed that the homeownership rate slipped from 68.1% from last year to 67.4% this year.
While the year over year decline in homeownership rate should not come as much of a surprise considering the number of Americans that are losing their home to foreclosure, what remains open for debate is how much farther the homeownership rate could fall.
Historically, prior to the housing frenzy that started in the late 1990's, the homeownership rate has ranged from 63-64%. The rate peaked at 69.2% during the 4Q of 2004.
The concern … (3 comments)
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homeownership bubble: MBA: Mortgage Purchase Applications Inch Up - 07/22/09 11:19 PM
After falling 9.4% last week to a 7-week low, according to the Mortgage Bankers Association, mortgage purchaseapplications moderated and rose 1.3% to 262.1. This was despite the fact that the 30-year fixed rate mortgage jumped from 5.05% to 5.31% for the week ending July 17th.
The 262.1 reading represents continued reluctance of consumers to apply for new credit to purchase real estate despite record housing affordability and an $8,000 first time home buyer tax credit.
In fact, neither the historically low mortgage rates nor the $8,000 first time home buyer tax credit has had any meaningful impact on demand. Here is a … (3 comments)
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homeownership bubble: Meredith Whitney: "I Think You Can See 13% Unemployment" - 07/19/09 01:19 PM
In one of Meredith Whitney's most recent and damning interviews (watch the video) on the economy, housing market, and banking system she forecasts 13% unemployment, 50% home value declines from the peak, the bursting of the homeownership bubble, and a prolonged banking and credit crisis.
Whitney, a banking analyist, has been one of the foremost experts on predicting the current crisis and recently said during a CNBC interview, "The banks are not prepared for double digit unemployment. I think you can see 13% unemployment. It's the unemployment that will come to haunt banks and require many banks to come back for capital."
Harvard University professor Elizabeth … (0 comments)
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homeownership bubble: Washington's Failed "Ownership" Housing Policy - 07/05/09 04:33 PM
Let me be the first to admit that I wish every American could own a home if they chose to, homeownership is a good thing for families and communities. Pride of ownership, tax deductions, and home equity are just a couple of the major benefits of owning a home. Unfortunately, for multiple reasons, not every American is going to own a home. Maybe it is a lack of credit, or a down-payment, or they simply can't afford the expenses, whatever it is, there is usually a good reason why about 1/3 of Americans don't own a home, it is not economically … (3 comments)
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homeownership bubble: Homeownership bubble deflating - 02/04/09 12:49 PM
A couple of months ago I wrote a post about a bubble that you don't hear much debate about, the homeownership bubble. The chart below shows that over the past decade, due to easy credit and cheap money, a disproportionate percentage of Americans than ever before have owned a home. This trend is already in the process of "correcting".
The reason why that post as well as the new homeownership data published by the Census Bureau is relevant is because it holds the secret as to a housing recovery.
The Census Bureau recently published their 4th quarter of 2008 homeownership … (6 comments)
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homeownership bubble: The revolving door of homeownership - 12/26/08 12:56 PM
For several months I have been listening to economists and bloggers advocate for declines in home values because homes are simply unaffordable and unsustainable, and that once home values come down, buyers will enter the market and the market will correct itself and everything will be ok.
And as Dr. Phil would say, "how's that working for ya?"
Those beliefs may have held some currency in 2005 and 2006, but here we are in November of 2008 and the median existing home sales price is $181,300 (source: NAR) - this is the lowest it has been since 2003, and yet we now have the worst … (10 comments)
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Mark MacKenzie
Phoenix,
AZ
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Mark MacKenzie Real Estate Planning
Office Phone: (480) 600-0330
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