Sunday, November 7, 2010

Foreclosure crisis accelerates decline of United States home ownership

home ownership gains within the United States over the past ten years have disappeared. Hardship in a depressed economy is depleting the number of United States homeowners at an increasing rate. Foreclosures have mounted by the millions in recent years and millions more will go down before the crisis is over. Post resource – U.S. home ownership rates falling as foreclosure crisis deepens by Personal Money Store.

Owning homes is becoming more rare

Home ownership in the United States of America has declined steadily over the last five years based on a record from the United States Census Bureau. U.S. home ownership has dropped by 3 million households since 2005. 66.9 percent owned homes in the third quarter of this year. Since 1999, the rate has not been that bad. Within the first quarter of 2005, home ownership had been at 69.1 percent which had been a peak. The economic uncertainty of the past a number of years hit younger homeowners probably the most. 39.2 percent of those younger than 35 owned homes, which since 2005 has decreased 9 percent.

The housing sector

As homeownership falls, the housing market follows. There was a 19 percent drop in existing home sales from a year ago in Sept. The current annual rate of 307,000 existing home sales is a historic low. Homes are going down in price since the sales continue to go down. The Census Bureau reports that 18.8 million homes are vacant. Below normal, a 600,000 a year annual rate is what housing starts this year are. Less people will rent or form new households, CNN accounts. Families will live two to a home. Younger people will get more roommates too.

home ownership and also the foreclosure turmoil

Nearly a million homes are expected to be foreclosed on in 2010. If unemployment stays this high, there could be more homes foreclosed on. In 2011, the rate could be even higher. Morgan Stanley came out with a report on this. It said that about 3.1 million mortgage holders will likely be foreclosed on as they are seriously delinquent. There will probably be about half of those homeowners dropping behind ending up with foreclosure. About 4 million homeowners are dropping behind. About 11 million homes could possibly be foreclosed on at any time.

Citations

CNN

money.cnn.com/2010/11/02/real_estate/homeownership_rate_falls/?iid=MPM

Daily Finance

dailyfinance.com/story/real-estate/u-s-homeownership-stuck-at-lowest-level-since-1999/19699908/

Consumer Affairs

consumeraffairs.com/news04/2010/11/the-american-dream-of-home-ownership-is-in-its-dimmest-period-in-more-than-a-decade.html



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