Scott Storace - Branch Manager, 100 Pacifica Drive Ste. 140, Irvine CA 92618 NMLS #226339 949.973.0141

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Homeowner Trends in 2012

Happy Homeowners in Orange County

Happy Homeowners in Orange County

Orange County, CA – You may have been watching your friends buy homes recently while you continue to rent. It can be hard to see people getting the opportunity to buy before you. While you’re saving away, it’s encouraging to look at the statistics and realize that you’re not doing too bad. And once you get to where you want to be, you too will be one of the fortunate few to become a homeowner.

According to the U.S census Bureau, vacancy rates have been declining in rental properties as well as with homeowners since March of 2011, going from 9.2% to 8.6% during the past year. A lot of this is due to rental units being occupied. 11.1% of units were left unoccupied during 2009, but this figure has dropped steadily in the time since. Homeowner vacancies have seen a smaller fluctuation, from 2.9% in 2008, to 2.1% today.

Of course, America is a vast country, and these figures don’t tell a regional story. Vacancy rates in the south are almost double of their counterparts in the Northeast and West.

At the moment, rates of home ownership are around the 65% mark, which means that quite a significant proportion of Americans own their homes. This figure is on the decline however. Minority home ownership saw a rise following the first quarter of 2011, but then steadied just as the rates of people identified as being white stood static at 73.5%. People falling in the 35-44 age groups saw increased ownership, as did those in the 45-54 age group and the 65+ age groups. However, the under 35’s saw home ownership trends decrease, as did the 55-64 age group demographic.

As you might imagine, the key determining factor for all of these figures is income. At present, around 80% of homeowners have a combined income greater than the average family income. Currently the average family income stands at approximately $51,000. Conversely, we find that just 50.6% of households that share a combined income of less than the national median average actually own their homes.

So what can we take form this data? First, it is encouraging to see so many different age groups increasing home ownership. We also see that although home ownership is becoming less common, the rate at which that percentage is falling has slowed. This leads us to believe that it won’t be long before more people begin finding their way onto the property ladder. Others, who fell off that ladder due to the difficult economy over the past 6 years, are also climbing back on.

If you want to determine if you’re ready to become a homeowner I’m happy to help you sift through the information. Give me a call.

Scott Storace

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