Fewer people claim home ownership now than at any time in the last ten years. The drop is gaining momentum. Severe joblessness, a wave of foreclosures and plummeting home prices are taking their toll. Millions of Americans have lost their homes in the last five years and millions more are expected to within the near future.
home ownership decreasing steadily
There has been a steady decrease in home ownership in the United States of America within the last five year. The United States Census Bureau accounts this. The U.S. has 3 million less households being owned. This has just been since 2005. 66.9 percent owned homes within the third quarter of this year. Since 1999, the rate hasn't been that bad. In the first quarter of 2005, home ownership had been at 69.1 percent which was a peak. Younger homeowners are unwilling to borrow with all the economic uncertainty there is right now. There was a 9 percent decrease since 2005 in those who owned their homes and were under 35. In the 3rd quarter of 2010, it had been at 39.2 percent.
What took place with the housing market
The dropping of homeownership is bad. The California budget ends up doing the same thing. U.S. existing home sales in Sept dropped 19 percent from the year before. A current annual rate of 307,000 existing home sales is where we're at right now. That is lower than ever. Homes are going down in price as the sales continue to go down. The Census Bureau reports that 18.8 million homes are vacant. Housing starts in 2010 are at about a 600,000 a year annual rate, far below what is considered normal. Cable News Network was able to speak with a real estate analyst. This person said that renting and forming new households just is not happening as much right now. There are more roommates for younger individuals while families will double up.
How the foreclosure turmoil was affected by home ownership drops
There ought to be a ton of foreclosures in 2010. In fact the amount is expected to a million. If unemployment stays this high, there can be more homes foreclosed on. In 2011, the rate will be even higher. A Morgan Stanley report said that about 3.1 million mortgage holders are seriously delinquent, and most are expected to lose their homes. Half of the 4 million extra homeowners dropping behind are expected to end un foreclosures soon. About 11 million homes might be foreclosed on at any time.
Articles cited
CNN
money.cnn.com/2010/11/02/real_estate/homeownership_rate_falls/?iid=MPM
Daily Finance
dailyfinance.com/story/real-estate/u-s-homeownership-stuck-at-lowest-level-since-1999/19699908/
Consumer Affairs
consumeraffairs.com/news04/2010/11/the-american-dream-of-home-ownership-is-in-its-dimmest-period-in-more-than-a-decade.html
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