Rate of Americans Starting Own Households ‘Disturbingly Slow’

In what could be a troubling sign for the housing market, household formation slowed considerably last year. Household formation is an important indicator of the strength of the economy and a key driver of demand for housing.  Source: Wall Street Journal

Making sense of the story

  • The U.S. added just 476,000 households in the year ending in March, compared with an average of 1.3 million in each of the prior two years, according to the Census Bureau’s annual survey.
  • The Census Bureau’s quarterly survey has also shown weak household formation—around 650,000 new households—for the same period measured by the annual survey that runs from March to March.
  • As a sign of why the housing market is experiencing these conditions, data shows that sales and construction of new homes are barely running ahead of last year’s pace, while the vacancy rate for professionally managed apartments has fallen to a 13-year low.
  • The U.S. population grew by 2.3 million last year and if household formation continued at the rate of the past few years, then the U.S. would have added 1.2 million households last year. However, according to Trulia, the U.S. added just 425,000—and nearly all of them were renter households.
  • While the number of adults living with their parents decreased last year, these Americans have yet to form their own households by opting instead to move in with other relatives or friends.
  • The homeownership rate for 18- to 34-year-olds continued to fall last year. Around 13.2 percent of 18- to 34-year-olds owned homes in the year ended March 2014, down from a peak of 17.2 percent in 2005 and 13.6 percent in 2013.
  • Overall, household formation rises when immigration increases and the economy expands, which encourages people to venture out on their own. Reticence about the economy leads more people to move in with family or double up with roommates.

Read the full story

Talking Points …

  • Diminished housing affordability continued to hold back pending home sales for the fifth straight month in August as rising home prices contributed to a further reduction in the share of distressed home sales, according to the CALIFORNIA ASSOCIATION OF REALTORS®.
  • California pending home sales fell in August, with the Pending Home Sales Index (PHSI) dropping 4.5 percent from 104.5 in July to 99.8 in August, based on signed contracts.  The month-to-month drop was inconsistent with the seasonal trend, which typically shows a slight increase from July to August.
  • Pending sales were down 8.7 percent from the 109.3 index recorded in August 2013.  The year-over-year decrease was in line with the six-month average of -8.9 percent recorded between February 2014 and July 2014.  Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

When you decide to sell your home in the Stockton, Manteca and Lodi areas, please contact me. And let’s get started!

  

Dave Thurman Real Estate

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425 S Coolidge Ave, Stockton CA ~ Just Sold by Dave Thurman, REALTOR

Your REALTOR®’s marketing efforts and considerations will include advertising, showing the property, how long the house has been on the market and whether you’re buying another home. Your home should be listed, whenever possible, through a Multiple Listing Service (MLS).

425 S Coolidge Ave, Stockton CA 95215

Better Than New! Updated east Stockton 3 bedroom 2 bath home. New paint inside and out, new wall to wall carpets and much more! Attached garage with cyclone fenced front yard and a huge back yard. Located East of Hwy 99 near Washington and East Main Streets. Just marketed and sold by Dave Thurman. When you decide to sell your home in the Stockton, Manteca and Lodi areas, please contact me. And let’s get started!

Dave Thurman Real Estate

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Negotiating The Deal

Dave Thurman Real Estate

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Homeownership Still Holds Promise for Nine in 10 Americans

A new survey shows the vast majority of Americans still regard homeownership as a “highly desirable goal,” despite lingering effects of the housing crisis in the market. The results stem from the latest COUNTRY Financial Security Index® survey and overall it was found that Americans are feeling more optimistic, likely due to an improving economy and labor market.  Source: DSNews.com

Making sense of the story

  • The survey found that 89 percent of Americans feel that buying a home is an important part of achieving the American Dream.
  • Furthermore, 64 percent of respondents expressed belief that owning a home is an attainable goal for a typical middle-income family, a significant improvement over last year, when just 41 percent said the same.
  • There was a generational split on opinions regarding whether or not the goal of homeownership is achievable. Respondents among the ages of 30–39 and ages 50–64 were most likely to be negative in that regard, with 26 percent and 20 percent, respectively, saying owning a home is not an attainable goal for a middle-income family.
  • Among non-homeowners, a quarter of those under age 30 and a fifth of those ages 50–64 said they have no interest in owning a home.
  • For those who currently don’t own a home, financial limitations represent some of the biggest barriers to homeownership. Fourteen percent say a low credit score is the primary obstacle.
  • Americans also cite a lack of a down payment (13 percent) and the price of homes in the area (12 percent) as impediments to homeownership.
  • More than half (56 percent) say their home is a long-term investment of 10 years or more to help fund retirement goals. Half of Americans also said they would avoid taking out a home equity loan unless absolutely necessary.

Read the full story

Talking Points …

  • California home sales pulled back in August, reversing two months of increases, as the median home price rose from the previous month and year, according to the CALIFORNIA ASSOCIATION OF REALTORS®.
  • August marked the 10th straight month that sales were below the 400,000 level and the 13th straight month that sales have declined on a year-over-year basis.  Sales in August decreased 1.2 percent from 398,940 in July and were down 9.3 percent from 434,910 in August 2013.  The August 2014 sales level was the second highest for the year so far.
  • The median price of an existing, single-family detached California home rose 3.3 percent from July’s median price of $464,750 to $480,280 in August and up 8.9 percent from the revised $441,010 recorded in August 2013.  The August 2014 price was the highest observed since 2007.  The statewide median home price has increased year over year for the previous 30 months, marking more than two full years of consecutive year-over-year price increases.

From C.A.R. ~ C.A.R. Market Matters is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 155,000 REALTORS® statewide.

  

Dave Thurman Real Estate

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How to Survive a Heart Attack When You Are Alone

What are you to do if you have a heart attack while you are alone?

Let’s say it’s 6:15 p.m. you’re driving home alone after an usually hard day on the job. You’re really tired, upset and frustrated. Suddenly you start experiencing severe pain in your chest that starts to radiate out into your arm and up into your jaw. You are only about five miles from the hospital nearest your home.

Unfortunately you don’t know if you’ll be able to make it that far. What can you do? You’ve been trained in CPR but the guy that taught the course didn’t tell you what to do if it happened to yourself. Since many people are alone when they suffer a heart attack, this article seemed to be in order.

Without help, the person whose heart is beating improperly and who begins to feel faint, has only about 10 seconds left before losing consciousness. However, these victims can help themselves by coughing repeatedly and very vigorously. A deep breath should be taken before each cough, and the cough must be deep and prolonged, as when producing sputum from deep inside the chest. A breath and a cough must be repeated about every two seconds without let up until help arrives, or until the heart is felt to be beating normally again. Deep breaths get oxygen into the lungs and coughing movements squeeze the heart and keep the blood circulating. The squeezing pressure on the heart also helps it regain normal rhythm. In this way, heart attack victims can get to a hospital.

Tell as many other people as possible about this, it could save their lives!

 

 

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