There’s never been a better time to be a homeowner in America, and the statistics agree. After years of a rocky effort to climb out of lowest homeownership rate of the 21st century (62.9% in 2016), Americans are seeing stability return to the housing market.
In the third quarter of 2018, the national homeownership rate was 64.4%. While there’s still ground to cover to return to the pre-Great Recession high of 69.1%, it shows movement in the right direction.
When lending rules became more stringent following the economic downturn of 2008, many would-be home buyers were unable to secure financing. Now that unemployment is at a 50-year low, more home buyers are emerging.
As home prices leveled out over the course of 2018, interest rates soared, reaching the highest level in nearly eight years. Over the past 12 months, we’ve seen the real estate market evolve from a seller’s paradise back to a buyer’s market, making 2019 ideal for a home purchase.
The luxury real estate market is a niche area where buyers’ interest is reemerging. Intelligent buyers recognize when the right price is set on an exceptional luxury property. Sellers are becoming more realistic about the market and recognize buyers have a multitude of choices. For luxury buyers, the next 12 months will present many situations for smart investments.
While homeownership rates haven’t yet returned to the level we saw in 2004, small steps toward recovery indicate more Americans are prepared – and able to – take on home ownership.
