The year 2013 is an exciting year for the real estate market, as it has experienced both ups and downs. New records are being set and old ones are being broken. Some things occurred for the good and some things did not have that great an effect on the entire market in general.
Considering the homeownership situation, it has been pretty good in the past few weeks, and is still going strong. However, just before this improvement, the homeownership rates experienced their lowest ever values in the last 17 years. With the job industry also booming right now in some of regions, many people are choosing to relocate to those cities. In some areas, they prefer renting a house instead of buying one. With this being the prime reason behind the dip in rates, the homeownership rate fell to 65.2%. This is the lowest value ever since the last quarter of the year 1995. The dip in homeownership can also be attributed to the housing market collapse several years ago.
In the year 1994, the homeownership rate was about 70%. But despite this, just the next year, it significantly reduced to 65.2%.
Industry experts are already aware of the performance which the housing market has delivered this year. Despite this, some of them feel that the homeownership rate may fall behind even more because there is a high chance that many individuals will default on their mortgages. As of now, there are over 10.4 million homeowners whose credit scores are low, but have still availed mortgages.
As such, real estate experts believe that over the next few years, the rate of homeownership will go even more down than what it is right now. The cause behind this will be the number of foreclosures that are due, which will eventually result in homeowners selling off their properties and living in rented houses.
The years of the Great Recession, which were an outcome of the housing market collapse, have without any doubt, left a deep impact on the economy. It will be quite some time before these effects can be mitigated. Indeed, recovery has been taking place for the last four years, but the rate is still slow. The number of jobs has increased but it still has not been able to completely eliminate unemployment, which is still fairly high at 7.6%.
On a local level, some states like Texas and particularly Houston have shown good performance in both employment and real estate market. But nationwide, the situation needs to be improved even more.