According to a government survey, the home ownership for the Americans declined steeply in the 2nd quarter of the year 2010. This was the lowest level of ownership to be registered in 11 years since 1999. The data release after second quarter shows that the percentage fall in the ownership of homes was at 66.9%. Compared to 2009, it was down by ½ %. The first quarter of 2010 registered an ownership rate of 67.1%.
Some important data on home ownership in the second quarter:
Midwest registered highest ownership with ownership rate at 70.8%.
The lowest was in the West, where the percentage of people owning homes was at 61.4%.
South along with West registered the lowered ownership compared to the figures last year.
Midwest and Northeast did not register any change when compared to last year.
Looking at the vacancies, the rate of vacancy for the units, which are non-rental, went down by 2.5% in the second quarter. For the homes which are rental, the vacancy rate stayed put at 10.6%.
The decline in home ownership is, mainly, due to the following reasons:
Increasing number of delinquency.
Increase in foreclosure.
Increase in the number of lender repossessions.
High unemployment.
Consumer pessimism, because of degrading market value of the homes.
All these factors can be removed if the problem of under employment and unemployment can be removed. But it never seems to be easy. With foreclosures increasing every now and then, the lenders are reducing the prices of the repossessed properties, which is a major concern for the housing industry. The prospective homebuyers are in a good position, because they can get a good repossessed property at discounted prices and when the market normalizes, the market value can appreciate which will leave them as winners.
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