Chicago, IL (PRWEB) April 29, 2014
The U.S. Census Bureau released its Residential Vacancies and Homeownership report on April 1st, revealing that homeowner vacancy rates have decreased since last year. The vacancy rate is now at 2 percent, about 0.1 percent lower than the first quarter of 2013. CF Funding is happy to see the economy recover as more homebuyers are able to fulfill their dreams of homeownership.
Although rental vacancy increased slightly (about 10 basis points to reach 8.3 percent), the vacancy rates are still relatively low in comparison to the past few years, and are now at levels last seen in 2001. The rental vacancy rate in the third quarter of 2009 reached as high as 11.1 percent. The homeowner vacancy rate in 2008 reached 2.9 percent. As CF Funding has mentioned before, the housing industry is experiencing large improvements that show signs of economic recovery, which has led to rising house prices and interest rates.
In regards to prices, the first quarter of 2014’s median asking price for rent in vacant units was $766, and the median asking sales price for vacant for sale units was $139,200. Rental prices have been steadily rising since 1999 as seen in the chart. Home prices were rising steadily until the recession (2007-2009) where a visible decrease shows home values sinking. As the economy improves, home prices are now rising again, which has put equity back into the homes of many, allowing homeowners to refinance in recent years. Read more about refinance options on the CF Funding website here.
The U.S. Census Bureau also divided vacancy rates by region: Northeast, Midwest, South, and West, as well as Metropolitan Areas, suburbs, and others. The vacancy rate for rentals in cities was at 8.5 percent, versus the suburbs’ 7.7 percent, and other areas (outside Metropolitan Statistical Areas – or MSA’s) at 9.7 percent. The homeowner vacancy rate in cities was 2.3 percent, versus the suburbs’ 1.8 percent, and the rate outside MSA’s of 2.3 percent. Rental vacancy was highest in the South at 10.3 percent. Midwest rental vacancy was 8.5 percent, in comparison to the first quarter of 2014 where the Midwest vacancy was 9.5 percent. Northeast rental vacancy was 7.0 percent, not statistically different from the West at 6.4 percent.
Homeowner vacancy rates in the south were also the highest at 2.2 percent in the first quarter, followed by the Midwest (2.0 percent), Northeast (1.8 percent), and the West (1.7 percent). The age group with highest homeownership vacancy was age 35 or younger at 36.2 percent. The age group with the lowest home vacancies was age 65 plus at 79.9 percent. For more detailed information, visit http://www.census.gov.
Today, most home payments are similar to the cost of renting. CF Funding has been helping renters achieve their dreams of homeownership for over 10 years. The lender has programs available with as low as 3 percent down (or no money down for veterans!). Renters who are looking to buy and gain valuable equity should contact CF Funding today by calling 888-344-4080 or visiting http://www.cffunding.com .