Does Q3 Uptick in Homeownership Reveal Good News or False Hope?

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This is not a turning point in the formation of new household. As long as the unemployment numbers are as high as they are no real improvement in this area can be expected. For a more detailed look at this subject – please read the article below.

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The Census Bureau’s announcement Tuesday that the national homeownership rate ticked up slightly in the third quarter of this year has some analysts wondering if this is a turning point for homeownership and others labeling slow household formation as a persistent hindrance to a full housing market recovery.

“Today’s data could be interpreted as an early sign that mortgage buyers are finally beginning to make more of a contribution to the housing recovery and the eight-and-a-half year decline in homeownership rates may finally be coming to an end,” Capital Economics said in a statement released Tuesday.

On the other hand, Trulia chief economist Jed Kolko said in response to the Census data, “Household formation was alarmingly slow and vacancies remain stubbornly high.”

The national homeownership rate stands at 65.3 percent as of the end of the third quarter, up 0.3 percentage points from the previous quarter, but down 0.2 percentage points from last year, according to the Census Bureau.

The homeownership rate is highest in the Midwest, where the third-quarter rate is 69.6 percent, and lowest in the West where it is 59.5 percent. The Northeast and South stand between with homeownership rates of 63.6 percent and 66.9 percent, respectively, according to Census data.

All four regions demonstrated increases over the third quarter. However, a look at seasonally-adjusted data reveals a stagnant homeownership rate of 65.1 percent nationally in the third quarter, unchanged from the second quarter and down 0.1 percentage point from the first quarter of the year.

To read the complete article – please use the link below.

Uptick in Homeownership

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