I feel inclined to comment on certain articles about real estate from time to time. More often than not, I want to point out something that is somewhat not true or exaggerated.
The article talks about less people buying houses now and it gives 4 reasons in their opinion. I absolutely do not dispute that there are less sales this year.
But one thing I do dispute is pointing out and emphasizing that the homeownership rate is slightly up from last year hitting a 50 year low.
Whenever you here that kind of rhetoric, it is really just something for someone to write about – and not significant at all.
If you have a minute to look at the graph in the article, you will see that for the majority of time over the past 50-60 years, the homeownership rate it in the 63.5% to 65.5% range.
So is it a big deal that we are at 63.7% now? No it isn’t!
When you see things like this, either run a Google search to get some statistics, or talk to a good realtor that has been around for a long time.
The problem is that so many articles are written and whether they directly say it or not, they are looking at the late 90’s to 2006 time period in comparing numbers. Look, you need to understand that period of time was and anomaly (out of the ordinary) concerning the performance and value of real estate.
During that time, you could practically just be breathing and get a mortgage. Many people were “lying” about how much their income was, and with all of the subprime loans out there, their income was never verified. Credit was way too easy and we all paid for it in some way. In my opinion, we will never go through that again.
But as a result the numbers from that time period were very skewed compared to normal historical statistics.
Yes, the homeownership rate went up to about 69% then. That’s pretty logical when it was so easy to get a mortgage then.
Anyway, we are back in what I call a normal range for homeownership.
So my point is:
Beware of a lot of articles about real estate out there – are they based on reality – are they backed by historical data?
You need to look at real estate from a long term objective.
Also please note:
Real estate is a totally local phenomenon.
Most articles you see are “general” so called real estate topics, data, and information,
Most of you reading this are in San Diego.
Watch for and put much more emphasis on information that is here in San Diego.
That is the real information that is important to all of you.
Coastal Premier Properties/Diversified Property Investments