85 percent would rather own a home according to a recent study. But what makes sense for you?
Fannie Mae just released study that looks at what motivates Americans to own or rent a home…
Fannie Mae’s study gives us a peek into what people think or feel about owning a home. Plus it might help the idiots in Washington understand how important home ownership is to Americans so that housing policies can be changed to reduce the risks of another housing meltdown while still making home ownership possible.
Maybe they can even ensure that the real estate market never suffers like it has for the past several years. And suffer it did! From 2006 to 2011, the US house prices fell more than any other time since the the Great Depression. Average house prices in the US in the fourth quarter of 2011 were about 21% than the peak back in 2006 peak. Which is why so many sellers get a rude awakening when they find out their home is NOT worth what it was just a few years ago.
Desire to Own a Home is Still Strong
This study does gives me hope that the American Dream of home ownership is alive and well. Despite exposure to the many negative things that have happened in the past couple of years, 85% of Americans prefer home ownership over renting. If you are selling a home then you will be glad to hear that Americans still want to own a home even after all the negative stuff that has happened in real estate.
America has faced the most challenging housing market since the Great Depression. A number of economic factors have influenced and/or resulted from the housing crisis:
- High unemployment
- Declining household wealth and spending
- Falling home prices/values
- Increasing delinquencies and foreclosures
- Difficult for consumers to get a mortgage
So it stands to reason the our attitudes towards owning or renting a home have been changed dramatically over the past several years. Consider these findings from the survey
- 58% of Renters say they will buy when they move again
- 72% of people that own their home outright said they will buy when they move again
- 80% of people with a mortgage said they will buy again when they move again
Let’s look at some of the charts from the study:
As you can see, owning a home is still important to many Americans. And the majority still thinks owning makes more sense than renting. Sadly, that last chart shows that many people think it would be difficult to get a mortgage.
Hindsight is 20/20
The only way to know if you can get a mortgage is by talking to lender. I would hate to find out that I could buy a home when I have been wasting my hard earned money paying rent. What about you?