Posted by: phillipsre | May 13, 2013

Real Estate Market Update

Tudorby John_color_croppedA recent report from Reuters states that homeownership in the United States hit a 17-year low in the first quarter as more Americans opted to rent, continuing a trend exacerbated by the collapse of the housing bubble. Economists said homeownership could decline even further given that about 10.4 million homeowners owe more on their mortgages than their homes are worth and credit is still tight. It looks like we are still in a recession even though we have had signs of turning around. Another challenge for the housing market, which is a positive for the rental market is that Americans are choosing to rent over buy these days, something we have discussed in the past. We have seen the increase in apartment buildings popping up all over town and the idea of living without the debt of a mortgage sounds pretty appealing to some. We are also seeing that the a lot of the buyers in the market are investors. And economists said the shift in ownership means rentals may continue to drive the housing market recovery in the near-term.

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