The housing market has continued to make improvement in the first quarter of the year. Home prices have increased, helping homeowners accumulate equity. Based on the first quarter trends of 6% home price gain, another $1.3 trillion in housing equity could be added to homeowners’ wealth this year. It has been a positive quarter for the housing sector, particularly for homeowners.
The spending growth for home improvement, including new home construction, rising brokerage commission income, more use of moving trucks and lawn care, and even increased consumer spending for many things arising from homeowner housing wealth accumulation are helping keep the economy afloat.
Another good sign- mortgage default rates are on the decline. The number of people late on their mortgage payment by only a month was 2.35% in the latest quarter, the lowest in at least 40 years when this data was first collected. In addition, the share of homes with new foreclosure proceedings fell to 0.36% of homes with mortgages – the lowest in over a decade.
The sense of stress is among renters. Rents have been outpacing income growth for the past four years. The strict credit requirements are holding many renters back from converting into homeowners. Another factor holding first-time home buyers back is student loan debt. That is a big reason why the homeownership rate remains at a near 50-year low, at 63.6% in the first quarter.
Among those under the age of 35, the ownership rate fell even more and was 34.2% in the latest quarter. Renter households in the meantime have been increasing upwards by an additional 9 million in the past decade while homeowner households have been reduced by a million.
The trend of more renters and fewer homeowners is occurring at a time of rising home values and housing equity gains. Many interpret it as a loss of The American Dream and attribute it to the rising wealth inequality.
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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.