The homeownership rate has steadily been rising since 2016 and is now at the highest level in over three years! Both millennials and older generations are seeing an increase and there’s optimism for continued growth in the homeownership rate, particularly among millennials as many are entering the market.
The Case-Shiller Home Price Index showed home appreciation remains solid with a 6.2% annual gain in November for the National Index (covering all nine U.S. Census divisions). Seattle and Las Vegas showed double digit gains, leading the list for greatest 12-month change.
Black Knight’s Home Price Index also highlighted solid home appreciation with a 6.44% year over year gain.
The average price of luxury homes sold in the fourth quarter of 2017 was up 7.4% while there was also a 23.8% decrease in million-dollar listings on the market. All housing markets are seeing a high demand that’s fueling the continued increase in home prices.
Basically, housing is good and despite increased prices, housing isn’t seeing a price problem—rates are still very low—it’s seeing a supply problem. Builders are still facing labor issues to meet demand of homebuyers. That being said, housing in 2018 is looking optimistic, rates are projected to increase some but homebuyers are not leaving the market—Spring might come early this early.