The vacancy rate of homeowner housing was virtually unchanged in the first quarter of 2008 compared to the rate in 2007, with vacancies at 2.9 percent and 2.8 percent respectively, according to the U.S. Census Bureau. The vacancy rate in the first quarter of the last two years is about 70 percent higher than it was from 1995 to 2005, when the first quarter homeowner vacancy rate never rose above 1.8 percent and generally stood at 1.7 percent or lower. The rental vacancy rate has also remained steady for the last two years at about 10.1 percent. Source: The U.S. Census Bureau
The National Association of Realtors says more than 50 percent of March’s home sales were tied to first-time buyers, many of whom snapped up foreclosed homes and other distressed properties. Experts believe getting first-time buyers off the sidelines to take advantage of historically low rates and federal tax credits will reduce the glut of homes on the market and spark a recovery. Some point out that first-time buyers are helping to revitalize communities in Florida, California, and other states hit hard by foreclosures. However, distressed properties often sell for 20 percent less than traditional properties, and the increase in lower-end sales is driving down the national median home price. Source: USA Today
The housing market is looking healthier, but U.S. Housing and Urban Development Secretary Shaun Donovan said Wednesday that it is too early to tell if the recovery has taken hold. “We do have some early signs, I think, that the market is stabilizing. Since January, what we’ve seen is both prices and sales volumes moving up and down around a relatively stable number,” Donovan said. Donavan also said he was optimistic that President Obama’s policies are bolstering the market. “I think in particular when you get below the national level what you see is that in markets like California that were the hardest hit, that is where the signs (of recovery) are the strongest,” he said.
