Housing market on the rebound Housing market on the rebound http://www.federatedinvestors.com/static/images/fed-logo-amp.png http://www.federatedinvestors.com/daf\images\insights\infographic\housing-sold-small.jpg April 9 2019 April 1 2019

Housing market on the rebound

Housing momentum is building as millennials move in and home prices moderate.
Published April 1 2019
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Household formation is on the rise. A household can be one or a group of persons who occupy one housing unit whether roommates, a four-person family or a married couple, etcetera. The number of Americans getting their own place has increased since June 2017. In June 2017 there were 118,385 new households formed, in July 2017 there were 118,490 new households formed, in August it was 119,118, in September it was 119,646, in October it was 120,081, in November it was 120,210 and in December it was 120,263. In January 2018 120,269 new households were formed, in February it was 119,795, in March it was 119,870, in April it was 121,081 in May it was 121,315 in June it was 121,325, in July it was 120,815, in August it was 121,307, in September it was 121,940, in October it was 122,378, in November it was 122,474 and in December it was 122,556. Since June 2017 household formation has increased from 118,385 to 122,556 at the end of 2018. With prices falling, the median price of existing single family home sales has decreased from $276,500 in June 2018 to $249,400 at the end of January 2019. More specifically, the median home price in June 2018 was $276,500, in July it was $271,900, in August it was $268,200, in September it was $259,300, in October it was $257,700, in November it was $259,900 in December it was $256,400 and in January it was $249,400. A new generation is moving in, too based on the homeownership growth rate by age during the fourth quarter of 2018. There was growth of one half of one percent for new homeowners who were younger than 35; there was a 2.2 percent increase for new homeowners aged 35 to 44 years; there was a 0.6 percent increase for new homeowners aged 45 to 54; there was a 0.2 percent increase for new homeowners aged 55 to 64 and a 0.4 percent decrease in new homeowners for those 65 and older. Information sources for this graphic include: United States Bureau of Census, 2019; National Association of Realtors retrieved from the Federal Reserve Bank of St. Louis, 2019.