Extended families skyrocket due to poor economy

Almost a third of homeowners expect their grown children or aging parents to eventually move in with them, according to a survey by one of the nation's largest home builders.

About one in seven say they already have a "boomerang kid" — an adult child who moves back home — or elderly parent living under their roof.

The survey out Wednesday of more than 1,000 homeowners by PulteGroup, builder of everything from starter homes to upscale residences and Del Webb adult communities, shows that the rise in multi-generational households may continue.

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"It's an enormous change," says Stephen Melman, director of economic services at the National Association of Home Builders. "I remember when I was in college, no one wanted to be near their parents." Read more >>

New Home Sales Collapse 8.4%

New home sales declined 8.4 percent sequentially in June, missing expectations and falling to the lowest level since January. Sales fell to an annual rate of 350,000, according to new data from the U.S. Census Bureau.

Economists polled by Bloomberg had forecast a 0.7 percent increase, to 372,000 units. Median home prices also declined during the month, falling roughly $5,000 to $232,600. Deutsche Bank's Joe LaVorgna noted that part of the problem stems from the drop in housing starts since the financial crisis began in 2007.

"The lack of building means it is doubtful we can see a sustained rise in home sales even toward the higher end of their range," he says. "However, based on the National Association of Homebuilders’ housing market index, we expect this situation to change over the next couple of years." Read more >>

US Homeownership Rate Hits 15-Year Low

Despite the incentives to buy now — namely that average rates on a 30-year mortgages are now 3.7% — sales of single-family existing homes slipped 1.5% in May from a month earlier, according to data released today by the National Association of Realtors. Experts say the drop, which came during the historically busy spring season, suggests the housing market has a way to go to recover. If anything, the ranks of American homeowners are dwindling. The homeownership rate in the U.S. fell slightly from 66% to 65% during the first quarter of 2012 — the lowest in 15 years, according to the latest data by the U.S. Census. (It peaked at just over 69% in 2004.)

 Renters, meanwhile, have more inventory to choose from as owners who are unable to sell their homes often have no choice but to find tenants, says Dan McCue, research manager at Harvard University’s Joint Center for Housing Studies. The number of single-family homes for rent or being rented grew by two million units from 2006 to 2010, according to a JCHS report released this month, and McCue says the number has likely grown since then. “One third of all rentals are single-family homes,” he says. Read More >>

Builders of new homes see no signs of recovery

Image via WikipediaSales of new single-family homes in February were down more than 80 percent from the 2005 peak, far exceeding the 28 percent drop in existing home sales. New single-family sales are now lower than at any point since the data was first collected in 1963, when the nation had 120 million fewer residents.
Story: Sales of new homes plunge to record low

Builders and analysts say a long-term shift in behavior seems to be under way. Instead of wanting the biggest and the newest, even if it requires a long commute, buyers now demand something smaller, cheaper and, thanks to $4-a-gallon gas, as close to their jobs as possible. That often means buying a home out of foreclosure from a bank. More...

U.S. homebuilder sentiment down as home prices continue falling

Image via WikipediaU.S. homebuilder sentiment slipped a notch in April as home prices continued to fall in most areas of the country amid widespread foreclosures, a survey released on Monday showed.

The National Association of Home Builders/Wells Fargo Housing Market index fell to 16 from 17, leaving the index in the pessimist range for a full five years.

A reading above 50 indicates that more builders view sales conditions as good than poor. The index has not been above 50 since April 2006.

“The spring home buying season is getting off to a slow start due to persistent concerns about home values as more foreclosures seem to be hitting the market, increasingly restrictive lending requirements for home buyers and builders, and the slow pace of economic recovery," said David Crowe, the NAHB's chief economist. More...