The results of a U.S. Census Bureau homeownership survey for Q2 of 2019 are in, and there's slightly bad news for sellers. The U.S. homeownership rate is 64.1%, down ever so slightly compared to Q1 of 2019 (64.2%) and Q2 of 2018 (64.3%). Translation — more people are selling, which is bringing down prices.
"The very modest decrease in the second quarter of 2019 ... [is] a momentary breather, an acknowledgement that the home value appreciation of 2017 and 2018 was not sustainable and that 2019 could net out as a much more sane year," wrote Skylar Olsen, director of economic research for real-estate company Zillow, on the company's blog.
Interestingly, the most growth in homeownership rate was seen in millennials (under 35), which increased from Q1 (35.4%) to Q2 (36.6%) this year. The second most growth was in the 45 to 54 bracket, which grew 0.6% during the same period.
In all other age brackets, however, there was a decline in the homeownership rate ranging between 0.5% and 0.9%.
"By 2019, some buyers simply couldn't save enough for a down payment and pulled back from the market, causing sales and home value appreciation to slow dramatically," wrote Olsen. "Given the affordability challenge of saving for that down payment, this could be a testament to the ambition of younger households to break into homeownership."
We'll just have to wait and see what the rest of 2019 looks like.