Board of Commissioners Meeting Materials (6/13/17) (3)

reached 6.2 months in the first quarter of 2012, the lowest level since 2006. According to the Joint Center for Housing Studies, a six-month supply is a rough indicator of market balance. However, the promising home supply figures do not account for the number of vacant units held off the market. In 2011, the number of vacant units held off market rose to 5.5% of housing stock, up from about 4.5% in 2000-2002. When these units come on the market, they could drag home prices down further. The Joint Center for Housing Studies concludes that the cooling housing market in 2006 and the foreclosure crisis had an immediate impact on homeownership (Figure 7). Homeownership peaked at 69.9% in 2005. After 13 successive years of increases, the national homeownership rate slipped each year from 2005 to 2011 and was at 65.4% in the first quarter of 2012. The Joint Center for Housing Studies predicts that the homeownership rate will continue to decline in the near-term due to the foreclosure backlog and tight credit conditions. As Figure 6 shows, the homeownership rate among seniors has remained high. Figure 6. Change in Homeownership Rate (percentage points) by age group, 1982-2011. 60 40 2.0 0.0 2.4 40 &0 a.a Ape of Homubold Head ID Urdar 3' d, 45-54 * 55-54 4+ 65 and Over kirte Jp15 la tlnt+cra al US Came ®wnr~.. Far,,.,°,, v.-.:.~ u 5 ~w-n Source: The State of The Nation's Housing, 2012, The Joint Center for Housing Studies of Harvard University, p. 3. http://www.jchs.harvard.edu/research/state_nations_housing The number of delinquent loans or home foreclosures has begun to decrease, although a large number of homes remain in foreclosure proceedings. As Figure 7 shows, the number of loans that are 90 days or more delinquent decreased since its peak in late 2009. At the end of 2009, 5.1 % of mortgages were 90 days or more delinquent; by the first quarter of Part 11 - Eugene Housing Needs Analysis ECONorthwest Page 39