Vacant Homes on Market Rising

The number of vacant houses for sale edged up to 2.23 million vacant units in the third quarter from 2.1 million units in the second quarter, according to a Census Bureau report, as foreclosures continue to bolster this inventory of unsold homes. The number of vacant houses on the market rose above 2 million in the fourth quarter of 2006 and has not retreated despite builders slashing construction of new homes to levels not seen in 26 years. The U.S. Census Bureau also reported that the homeownership rate declined to 67.9% in the third quarter from 68.1% in the second quarter. The homeownership rate was unchanged for African-Americans (47.8%) and Hispanics (49.5%). On the brighter side, a quarterly survey by the Wall Street Journal finds that the total number of homes on the market in 28 major metropolitan areas declined in most areas during the third quarter.