Homeownership rises in 3Q

According to the U.S. Census Bureau, the homeownership rate in the third quarter of 2011 increased 0.4 percent from 65.9 percent in the second quarter to 66.3 percent, marking the first quarterly increase in two years.

The Midwest had the highest homeownership rate at 70.3 percent, while the South reported 68.4 percent, 63.7 percent in the Northeast and 60.7 percent in the West.

"The homeownership remains at a level that suggests America's love affair with housing is still on the rocks," analysts at Capital Economics told Housing Wire.

As more more Americans became homeowners in the third quarter, CoreLogic reported that the average national property price fell in August compared to July, the first drop in home price in four months.

The Home Price Index for August showed actual average property prices fell 0.4 percent in August compared to July, while distressed property sales fell 4.4 percent in 2011 compared to August 2010. The index showed non distressed sale prices fell 0.7 percent between the month in 2011 and 2010.

"The continued bright spot is the non-distressed segment of the market, which is only marginally lower than a year go and continues to exhibit relative strength," said Mark Flemming, Corelogic's chief economist.

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