November 5th, 2012 categories: Chicago Real Estate News
Looking for another sign that the national economy is on the mend? The country’s home ownership rate might start to rise soon.
A recent story by REALTOR® Magazine found that the nation’s home ownership rate is no longer falling.
That’s good news for the country. It means that more buyers are purchasing homes. And home sales provide a boost for the national economy as buyers shop for furniture, hire landscaping companies, purchase barbeque grills and plan master-bedroom expansions and kitchen remodels.
In other words, when the housing market is active, so is our country’s economy.
According to the REALTOR® Magazine story, the home ownership rate stood at 65.5 percent in the third quarter of this year. That’s the same level at which it stood the previous quarter.
This rate is still down from where it stood one year ago. In the third quarter of 2011, the nation’s home ownership rate stood at 66.3 percent. But the good news is that the rate has stopped falling. This is leading some real estate experts to wonder if the home ownership rate will begin to rise in the coming months.
Of course, the nation’s home ownership rate is far below its peak. The rate hit an all-time high of 70 percent during the days of the housing boom. The rate started to fall as foreclosures rose during the housing market’s long slump.
REALTOR® Magazine quotes a story by the Wall Street Journal that says that some industry watchers expect the home ownership rate to increase as savvy consumers take advantage of lower housing prices. At the same time, historically low interest rates are providing additional motivation to potential buyers.