Homeownership: “The Reports of My Death Have Been Greatly Exaggerated.”
The famous quote by Mark Twain in the title of this article can be used to describe homeownership in America today. Last week, the Census revealed that the percentage of homeowners in the country increased for the first time in thirteen years.
A story in the Wall Street Journal gave these new homeownership numbers some context:
“The annual increase marks a crucial turning point because it comes after the federal government reined in bubble-era policies that encouraged banks to ease lending standards to boost homeownership. This time, what’s driving the market is a shift in favor of owning rather than renting.
‘This is market, market and market…There’s no government incentive program in sight that is having this effect,’ said Susan Wachter, a professor of real estate and finance at the Wharton School at the University of Pennsylvania, ‘This is back to basics.’”
In a separate report comparing the rental population in America to the homeowner population, RentCafé also concluded that the gap is now shrinking.
“Undoubtedly, the recession had a great impact on homeownership…However, it looks like it takes more to discourage Americans from buying a house than that.
As the years go by, it seems more and more certain that the fact that renting has seen a sudden gain in popularity is more a reaction to the economic crisis than a paradigm shift in the Americans’ attitude toward housing.”
America’s belief in homeownership was also evidenced in a recent survey by Pew Research. They asked consumers “How important is homeownership to achieving the American Dream?”
- 43% said homeownership was essential to the American Dream
- 48% said homeownership was important to the American Dream
- Only 9% said it was not importantBottom Line: Homeownership has been, is and will always be a crucial element of the American Dream.
Take advantage of more inventory coming to market in the Spring to find your dream home!
Going forward…It appears the homeownership rate will continue to increase.
As an owner, your mortgage payment is a form of ‘forced savings,’ which allows you to build equity in your home that you can tap into later in life.
Real Estate might be the safest, steadiest and simplest way yo build wealth in America.
In fact, by the time college grads reach their 30s, those with student loan debt have a homeownership rate nearly identical to those who didn’t take out loans.
The belief among the vast majority of Americans is that purchasing a home still remains a major step toward accomplishing the American Dream.
Not all buyers are looking for a newly built house! There are many buyers looking for “the charm and uniqueness” of an existing home.
Having a professional who’s been there before to guide you through the process is a simple step that will give you a huge advantage!
The cost of purchasing a home today is a bargain compared to previous generations when we look at it from a percentage of income basis.
Pricing your home at or slightly below market value actually increases the number of buyers who will see your home in their search!