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.
John Easterbrook NMLS#226555
Patty Aguon NMLS#994635
