In a recently released 2019 Survey of Consumer Expectations Housing Survey by The Federal Reserve Bank (The Fed), 65 percent of Americans hold the belief that home-ownership is a good, solid financial investment for increasing net worth. The percentage of folks holding this belief increased by over nine percent since 2014.
Diving deeper into the survey looking at age, education, income and area of the country, the survey found more than 55 percent of folks in each category view owing a home as a good investment.
Interestingly, the results of this survey compare with a recent Gallup survey, which showed that real estate was considered the top choice for the best long-term investment when
Inventory of homes for sale has increased month over month since June of last year. And, typically every spring and summer we see an inventory increase because people want to sell their home, sometimes due to being in a new home for the beginning of the school year.
If you are considering selling, these 4 tips may help you find a home buyer quickly:
1. Make buyers comfortable and feel like they are home
De-clutter! remove and pack all personal items like photos, awards, and items of sentiment. Remove you from the house and allow buyers to envision themselves living in the home. As reported in the Profile of Home Staging by the National Association of Realtors®, "83% of buyers' agents said staging a home made it
Home ownership offers tremendous financial advantages.
A research paper Homeownership and the American Dream, by Laurie S. Goodman and Christopher Mayer of the Urban Land Institute explained:
"Homeownership appears to help borrowers accumulate housing and nonhousing wealth in a variety of ways, with tax advantages, greater financial flexibility due to secured borrowing, built in 'default' savings with mortgage amortization and nominally fixed payments, and the potential to lower home maintenance costs through sweat equity."
5 Significant financial advantages of owing a home
1. Housing is typically the one leveraged investment available
Owning a home allows for amplification of any appreciation on the home value by a leverage factor. A
The Federal Reserve administers its Survey of Consumer finances every three years. Information is gathered by researching across all economic and social groups. The most current report dates from 2013 thru 2016.
The report shows that the median net worth of a homeowner is $231,400 - a 15% increase since 2013. Over the same period, the median net worth of renters decreased by 5% ($5,200 currently as compared to $5,500 in 2013). This research shows a homeowner's net worth is more than 44 times greater than that of a renter.
Home Ownership is a tremendous path towards increasing net worth
As in past posts, owning a home is a form of "forced savings." With each mortgage payment, you are adding to your net worth by increasing the amount of equity
Premium or Luxury homes are typically defined as homes priced in The top twenty-five percent of homes for sale in that area. In the current real estate market, there are plenty of potential "good deals" to be found in the higher end market. This is fantastic news for current homeowners looking to move up to a more comfortable premium home.
During the last couple of years, most of the demand for housing was from first-time home buyers looking to find their starter home while less demand was for higher priced homes.
According to ILHM’s Luxury Report, this imbalance between buyer demand and premium home inventory has resulted in a Buyer’s Market for luxury homes (homes priced from One Million and more).