Homeownership Lowest in 13 Years
The US economy (having never fully recovered from the great recession) is experiencing a waning housing market and Portland Oregon seems to be following this national trend. Economic uncertainty surrounding the Federal Government shutdown, healthcare and future tax liability have made many key industry players including builders and investors a little more than uneasy in recent months. These concerns, combined with normal seasonal slowing off the industry have combined to undermine recent gains in residential home values.
According to the National Association of Realtors today’s home ownership is the lowest it has been in the last 13 years. The US Census reports new household formation was 380,000 down from 2 million pre-recession levels. A new household is established when a person rents an apartment or purchases a home. Generation Y and Generation X adults are remaining at home longer with parents or living with someone else. The number of millennials living with parents is up from 31.4% 3rd quarter 2012 to 31.6% 3rd quarter 2013.
Demand for single family homes has dropped and it isn’t staging a comeback as nonstop dismal data on wages and job growth continue to flow. Many established households remain in duress with no end in sight. Barons reports an additional 10 years of sluggish growth in a best case scenario with a recession expected in 2015. Fannie Mae remains with high levels of foreclosed unsold homes commonly referred to as shadow inventory. Existing homeowners continue to seek mortgage relief through short sales as an effective tool in regrouping to move households forward. The number of out of state homeowners subsidizing rental homes in Portland remains high, resulting in these owners reaching out for short sale assistance.
For additional information on short sales please feel free to contact our Certified Short Sale Specialists.