Facts and figures are coming at us from everywhere. The important thing for you to know is what’s happening in your market, in your economy. Those are the numbers that will really affect your property values, what you can pay when you buy and what you can expect when you sell.
That being said, here are some interesting recent figures from Standard and Poor’s and the US Census Bureau.
According to David M. Blitzer, chairman of the index committee at Standard & Poor’s, average home prices across the country are now at the levels they were in the fall of 2003.
“It still looks possible that the housing market might bounce along the bottom for the foreseeable future before showing any real improvement that will filter through to the rest of the economy,” Blitzer stated. This statement, by the way, seems to be the one that I read most consistently, no matter what the source. I, personally, believe it will be three more years before we see a measurable turn around in the real estate market.
Data just released by the US Census Bureau states that the U.S. homeownership rate dropped to 66.9 percent during the second quarter of this year, hitting its lowest mark in more than 10 years.
They report that approximately 85.6 percent of the housing units in the United States last quarter were occupied. Owner-occupied homes made up 57.3 percent of total housing units, while renter-occupied units made up 28.3 percent of the inventory. 14.4 percent of the nation’s total housing stock was vacant during the second quarter of this year.
Landlords are experiencing a surge in rental activity. A report released by the market analytics firm MPF Research shows that 215,000 previously empty apartment units became occupied during the first half of this year.
The company says that six-month figure is nearly double the number of units that were filled during the full 2009 year and the highest mid-year tally since MPF began tracking apartment occupancy statistics in 1992.
This is what we are experiencing as well. Because it’s so hard to get a loan no matter what your credit score and credit history, and because so many people now have bankruptcies or foreclosures on their record, more people are renting than in the past decade.
What we’ve seen in the past were renters who had always been renters or thought of themselves as renters. Now we find a lot of renters who have previously owned homes and still want to own.
This is a great time to be a landlord. What’s your experience?