Housing by the Numbers: Jan 30, 2018

64.2%

That’s the national home ownership rate, as reported by the Census Bureau. HousingWire points out that 36% of Millennials own homes, versus 79.2% of those 65+. 72.7% of the non-Hispanic white population own homes, versus 46.6% of Hispanics and 42.1% of blacks. Zillow economist Aaron Terrazas is hopeful that having created enough rental housing to meet market demand, builders will now turn their attention to the for-sale market, thereby fueling continued growth in home ownership.

632,000

David Blitzer, S&P Dow Jones Indices managing director, points out that there’s been very little for-sale housing construction. Single family home starts averaged 632,000/year between 2010 and now, versus 698,000/year during the last financial crisis and 1.5 million/year between 2001-2006. Bill McBride at Calculated Risk puts home construction in context of the overall economy. The $272 billion Q4 spending was 1.4% of GDP, compared to the $238 billion home improvement spending, which was 1.2% of GDP. Bill also notes that the multi-family housing market has now softened for 9 consecutive quarters.

7.9% vs 20%

The National Association of Home Builders finds this curiosity: all-cash deals accounted for only 7.9% of new home purchases (as reported by the Census Bureau), versus 21% of existing home sales (says the National Association of Realtors). Two reasons: new homes cost a lot more ($321K median, versus 248K median for existing homes), and 15% of existing homes were purchased by investors.

693

According to Experian‘s fascinating State of Credit report, that’s the average credit score in Washington State. The national average is 675. 22.3% of Americans have 780+ credit scores, versus 19.8% five years ago. 21.2% have sub-600 scores, versus 26.9% in 2012.

$100 million

Realtor Magazine reports that Home builder Lennar offered real estate start-up Opendoor $100 in debt financing. The two companies are testing a home trade-up program (“as you do with cars!”), whereby Opendoor’s software algorithm buys your old house on the spot, so that you can buy one of Lennar’s brand new houses.

2%

HousingWire reports on Divvy Homes’ new twist on home financing. Pick out any house for sale and Divvy will buy it. You then put 2% down and pay a monthly rent, with the goal of building up 10% in equity over 3 years. At that point, you would have the option to buy out the remainder of the house with a mortgage.

Posted on January 30, 2018 at 6:11 pm
Isabel Wang | Category: Uncategorized

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