With the spring market underway it is time to review the many merits of home ownership. The barrage of negative media stories regarding the state of the market can lead to buyer and seller concerns. Three major points regarding the impact of housing:
Financial Benefits – Over the past 41 years h0mes values have risen an average of 5.5% annually. In spite of recent loss in value over the past several years they are stronger than that were in 2004. Leveraging a 5% down payment in your home you can expect to exceed average stock market returns.
Social Benefits– Home ownership promotes stable communities. During the period of 2008 to 2009 only 5.2% of homeowners moved, as opposed to 30% of renters changing residences. Studies have shown that home owners are significantly more likely to vote and volunteer in the community. Areas with high home ownership rates have significantly less crime, and children are more likely to achieve a higher level of education.
Housing’s Economic Impact – Housing is an engine that drives the economy. Six of the last eight recessions have ended as a result of a robust housing market. The National Association of Realtors estimates that one job is created for every home sale, and each existing home sale at the median price of $173,000 has a economic impact of over $30,000.
