Facts On CMA Reports and Buying Homes

In the year of 2016, a study was conducted in regards to overall homeownership in the United States. What this study revealed is absolutely alarming for anyone working in the housing market. This study revealed that homeownership is currently the lowest it has been in nearly 50 years. As a result, there are fewer people that understand CMA reports than ever before.

Over the next decade, 80% of residential growth will happen in suburban communities. So this is an interesting statistic to look at because it seems to directly oppose the previously mentioned problem of homeownership. However, there are still relatively few people that understand what CMA reports are. Here are the facts on CMA reports:

CMA stands for comparative market analysis and this is something often done by realtors. They will compile data and analytics to determine the market for homeownership. This can be tricky, lengthy, and confusing, and may point directly to why people want to avoid homeownership when figuring out their living situations.

According to the National Association of Realtors, 56% of buyers 36 years old and younger found their homes online. The housing market is potentially on the rise for anyone that is of a younger age as it begins to balance out from the collapse. Understand that in just a year of 2017, the value of the United States housing stock managed to grow by 6.5%. While this seems small as a percentage, it basically equates to a growth of $2 trillion.

CMA presentations and real estate CMA software often deal with CMA reports and the methodologically behind this process. However, it is important to understand your own situation using your own CMA tools. You can easily look into how realtors produce this information to double check whatever they provide you with in terms of information.

All the homes in the United States are cumulatively worth $31.8 trillion. The 10 most valuable metropolitan areas in the United States are worth 36%, $11.3 trillion, of the total U.S. housing stock. Make sure you understand these types of basic facts when you move forward with your CMA reports.

According to the Census Bureau, the median sales price of new houses sold as of February 2018 was $326,800. Approximately 19% of all homes sold in 2016 were purchased for investment purposes. The housing market regained some of the loss from the 2008 crash, with median home prices rising 16.9% from $177,000 in 2008 to $207,000 in 2017.

In Conclusion

Millennials and Gen Yers made up about 34% of home buyers in 2017, a number that’s only expected to rise. So this means that young people are soon going to be dominating the housing market in the United States. This is incredibly important because it means that young people hold the future of the housing market in their hands. As a result, they are going to be tasked with potentially riding the wave of a rebuilding housing market.

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