Tag Archives: Housing Demand

The increasing number of first-time homebuyers is another factor driving up the demand for housing, according to Realtor.com. Many of those first-time buyers are millennials who have been sidelined by the challenging market conditions.

The market capacity for existing-home sales increased by 0.3 percent month-over-month and 12.5 percent year-over-year in May, while rising interest rates and a slight jump in unemployment countered equity-enhancing home price appreciation, according to First American.

The homeownership rates declined by at least 0.6 percentage points year-over-year in all age categories (under 35; 35 to 44; 45 to 54; 55 to 64; and 65 and older), with the largest decline coming in the 35 to 44 age group (2.3 percentage points, from 60.7 down to 58.4 percent.

The share of respondents in Fannie Mae's survey who said their household income is "significantly higher" than it was a year ago climbed 4 percentage points to a survey high of 29 percent, the company reported. Looking ahead, 48 percent said they expect their finances to improve in the next year, also a survey high. Overall, 44 percent of Americans said they believe the economy is on the right track, an increase of 3 percentage points and only a few points less than those saying the economy is headed the wrong way (49 percent). That optimism spurred 66 percent of those surveyed to say they would buy a home if they had to move, a jump from 61 percent at the end of 2014.

In its latest look at resale data, NAR reported that the stock of available existing homes for sale was around 1.85 million in December, putting the national supply at 4.4 months at the current sales rate. Also challenging the housing market right now are stringent credit conditions, stagnant wages, and "lingering wariness about homeownership benefits," said Auction.com's chief economist, Peter Muoio.

The steep decline in the number of marriages in the U.S. among the population aged 25 to 29 has been a key factor in the slow recovery of the housing market, according to a report from John Burns Real Estate Consulting (JBREC).

Despite slower growth early in the year and a disappointing showing in August, the labor market managed to add more than 1.7 million jobs in 2014's first eight months, coming in at 300,000 more than average over the previous three years as payrolls kept up a steady streak of monthly gains above 200,000.