Who's Buying?

Housing is Back!  Who’s Buying?

 

Realtor.com has an article that claims the US is right on track and has by and large recovered from the housing crisis.  On the sales front, there were more sales of both existing and new homes in 2015. Judging from the data reported through November, new-home sales were up 13% and existing-home sales were up 7%. That higher volume of sales was supported by strong household formation (1.4 million households formed in the past four quarters ending in September) and another year of solid job creation (an average of 210,000 jobs per month through November). Normal, non-distressed sales increased among first-time and repeat buyers, and buyers who were relocating and/or changing jobs. CLICK HERE for ARTICLE

 

Here’s the kicker though: Most of the new households forming are renting households, and that’s where the demand-supply imbalance is most acute. Apartment vacancies are at multiyear lows, and correspondingly, rents are now rising faster than home prices. While it may sound like a real estate agent’s dream to say that it’s cheaper to buy than rent in more than 75% of the country, that sound bite doesn’t bode well for the future.  When renting households are so burdened by making rent payments, they’re less able to save up to own.

            To make your dreams come true, Call The Easterbrook Team for your refinance and purchase needs.

916.850.6050 easterbrookteam@spmc.com 

John Easterbrook NMLS#226555

Patty Aguon NMLS#994635