Tuesday, February 3, 2015

Homeownership seems to rebound

At the end of 2014 the homeownership in the United States was only 63.9 %. That is the lowest rate since 1994. However, in comparison to other countries such a rate is high. The homeownership rate in Germany for example is below 50 %.

The reason for this low homeownership in the US is the mortgage crisis that led to the housing meltdown and the massive foreclosure wave. During this housing downturn many homeowners lost their property because they could not afford their home any longer and had to move back in with their parents. That means that under one roof sometimes live two or three families together – the parents and the son and/or daughter with their family. Depending on the size of the house that can be tough.

Since the economy is recovering and the job market offers new opportunity these households have a new change to get on their feet and buy a new home. While they were living with their parents these potential home buyers had the time to save some money for the down payment of their new home and could repair their damaged credit records.

These home buyers are today in a better financial position when they apply for a loan and the lenders are also on their way to make loans more affordable. The lenders know if they do not give loans they will not make money therefore they will help home buyers to qualify for a loan.

As an international buyer you should keep in mind, that you have to buy now before these new US buyers hit the market and you are in the competition with these homeowners.

You will find valuable information about an international real estate purchase in this book

Or you can contact us at andrea@florida-informations.com.