On a seasonally adjusted basis the homeownership rate was unchanged and Capital Economics was not impressed by Tuesday’s report.
“The homeownership rate ticked up in the third quarter of the year. But the recent drop in home sales and mortgage demand, as well as the fact that the rise was driven by older households, suggests that it is too soon to declare a turning point,” says Ed Stansfield, chief property economist at London-based Capital Economics.
Investor demand for single-family rental properties over the past two years has reduced the overhang of foreclosed properties and contributed to the decline in the homeownership rate. Tuesday’s Census Bureau report shows that demand for those vacant properties slowed in the third quarter.
The inventory of vacant single-family homes for sale fell by just 2,000 from the second quarter to the 1.5 million in the third quarter.
In addition, the asking price for those vacant houses fell 5% from the second quarter to $140,600 in the third quarter.