Charlotte Real Estate and More

head_left_image

Keep Calm and Don’t Be a Chicken Little

Keep Calm and Don’t Be a Chicken Little

Don't be a chicken little

 

Following the Census Bureau’s  2019 Q2 Homeownership Report release, the Chicken Littles of the world came out in droves! We were, on a daily basis, dispelling rumors that another recession is going to happen by the end of the year. Many interpreted the report as Americans may be stepping back from their belief in homeownership, therefore leading to another recession.

 

Americans who owned vs. renting their primary residence (a.k.a. homeownership), increased significantly during the housing boom, reaching an all-time high of 69.2% in 2004. *Reminder: The Great Recession began in 2008.

 

The Census Bureau reported that the second quarter of 2019 ended with a homeownership rate of 64.1%, which is down fractions from the 64.8% rate for the fourth quarter of 2018. This stat is exactly what led the Chicken Littles to question whether the consumer’s belief that homeownership is a major part of the American Dream, is waning or not.

 

Keep Calm…

 

YES! The numbers don’t lie! It IS true that homeownership rate DID fall. However, based upon the national rate over the last 35 years (1984-2019), the current data reflect that the homeownership rate has returned to historical norms. The 64.1% rate is equivalent to the rates in 1984 and 1994.

Homeownership rate

 

What Will the Future Bring?

Well, if only we all had a glass ball. And, if only there was a way we could either hibernate during the low points in the market when we saw it in our glass ball! Or better yet, wouldn’t it be nice if we could collectively change the future when we saw a recession on the horizon in our glass balls?!

Don't be Chicken Little about the Real Estate Market in Charlotte

However, before you don your Chicken Little costume, REMEMBER, a large part of the reason that homeownership slipped is because of a lack of inventory. Even digging even a little deeper, a lack of inventory available for purchase for first-time home buyers has also curbed homeownership for that large, very specific sector. The demand is there, but, the supply simply is not.

 

Ivy Zelman has recently reported that builders are now increasing the number of homes they’re constructing at the lower-end price points:

 

“Robust growth in the entry-level price point of late should translate to a reacceleration in homeownership rates moving forward.”

 

 

bottom line in charlotte real estate

 

Today, the homeownership rate sits at historic norms. Sure, we will likely see increase in inventory in the upcoming months. This is no surprise or change for those of us in the industry – this is a SEASONAL change that we are accustomed to experiencing.

 

Don’t let the talking heads convince you to don your Chicken Little suit -  there is no reason for concern!

 

© Debe Maxwell | The Maxwell House Group | RE/MAX Executive | CharlotteBroker@icloud.com | Keep Calm and Don’t Be a Chicken Little - Don’t let fake news impact your home buying – talking heads are not in the trenches – we ARE!

Data graphic and first photo provided by KCM.

Tagged as: Charlotte home buyer tipshomeownership

The Maxwell House Group Charlotte NC

 

  Charlotte NC Homes for Sale

 (THE best Charlotte home search available - no kidding!)

Charlotte NC Real Estate Agents 

 

Charlotte CRS Agent


Debe Maxwell, Realtor®/Broker/CRS

RE/MAX Executive

CharlotteBroker@icloud.com
Direct:  (704) 491-3310

 

               Search Charlotte Neighborhoods      Search Charlotte Homes for Sale       Relocate to Charlotte NC

                               Things to do in Charlotte NC     Charlotte Real Estate Information

          

Charlotte Real Estate on Pinterest  FacebookFollow me on TwitterYou Tube  Connect with me on LinkedInSubscribe to my RSS feedCharlotte Real Estate on Pinterest

subscribe to my Active Rain BlogEmail meSearch Charlotte NC MLS

Disclosure of material contained within

Get Charlotte's Best Home Search App
Download Charlotte's hottest new app for up-to-the-minute listings and the most accurate neighborhood information available on the web!

DOWNLOAD CHARLOTTE PROPERTIES AT THE APP STORE

GET THE CHARLOTTE PROPERTIES APP AT GOOGLE PLAY
Comment balloon 12 commentsDebe Maxwell, CRS • August 10 2019 03:48AM

Comments

Hooray for homeownership!  After a lot of perseverence you can actually own your home outright and not be paying a mortgage or rent.  It's worth it no matter what.  Don't be chicken little!

Posted by Georgie Hunter R(S) 58089, Maui Real Estate sales and lifestyle info (Hawai'i Life Real Estate Brokers) 4 months ago

I love your enthusiasm, Georgie! I'm in full agreement with you too - there's just nothing like achieving that American Dream, is there?!

Hope you have a wonderful weekend, Georgie Hunter R(S) 58089!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 4 months ago

Morning Debe.

In our 51 years of marriage, I believe we've rented for maybe 3 months.  Otherwise we've owned a home.  It is the American dream, isn't it.

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty) 4 months ago

Good morning, Debe Maxwell, CRS the market is very strong.... 2019 is, thus far,  our best year yet.... and I belive the "2 team members" could hit 100 listings this year (or very close to it.)  We dig for those listings and they fly off the shelves...there's a demand.... 

Posted by Barbara Todaro, Marketing Agent for The Todaro Team (RE/MAX Executive Realty ) 4 months ago

Good morning Debe. The desire for home ownership remains strong. The challenge is affordability and supply. We love challenges because they create opportunity. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) 4 months ago

Hi Debe Maxwell, CRS,

I have never rented and hopefully never will. There are many bellwether industries besides housing that will point to a recession. We have one of the strongest economies this country has ever seen right now.  

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Residential Brokerage) 4 months ago

Hello Debe - there's often(if not usually) a story beyond the numbers.   Chicken Little understood this...eventually...

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 4 months ago

Good morning Debe. I think you did a really good job with this: subtle and yet right out there.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) 4 months ago

Good morning Debe - I am not a chicken little.  I don't see a reason to panic.  Housing is also one statistic.  There are others.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 4 months ago

Hello Debe, Great blog as always from you and I can see why you are busy with clients all the time.

 

Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) 4 months ago

People are so lucky to have you as a resource, you always stay on top of what is going on in the market.

Posted by Brian England, MBA, GRI, REALTOR® Real Estate in East Valley AZ (Arizona Focus Realty) 4 months ago

Debe

Great post and the only certainty today, nobody truly knows where this economy is going especially with all that's happening in the world. Gee, but it is so much fun being a PEEP SQUEAK. cheers cvc

Posted by Curtis Van Carter, Your Napa Valley Broker Extraordinaire (Better Homes & Gardens Wine Country Group) 4 months ago

This blog does not allow anonymous comments