When it comes to purchasing or investing in US real estate,it seems that every day there is more solid verification of the team’s direction although, if you are a regular reader of this blog, that shouldn’t be a big surprise.
In an article this weekend, Bloomberg reports that “The U.S. homeownership rate fell to the lowest level since 1998 in the second quarter as stricter lending standards blocked purchases and foreclosures forced people out of their residences. The ownership rate through June was 65.9 percent, the lowest since the same rate 13 years ago, the U.S. Census Bureau said in a report today.”
We’ve talked about this as a community. We’ve blogged about it. And everything we read keeps moving us forward at light speed in that direction.
America has become a nation of renters.
Bloomberg goes on to say that “Tight underwriting standards and the lack of a down payment are keeping a big chunk of buyers out of the market and other people are being displaced by foreclosures,” Yamano (Wayne Yamano,director of research at John Burns Real Estate Consulting in Irvine,California) said in an interview before the report. The ownership rate may tumble to about 62 percent by 2015, he said.”
Continue to tumble until 2015! That’s a four year window!
The time to purchase U.S. real estate is right now.
Here’s the simple math: Home ownership rates are dropping + Americans are looking to rent = The perfect storm.
If you want to find out more, our team is holding free ‘Introduction to US Real Estate” workshops across Canada.