REAL ESTATE OVER COFFEE—Why ARe More People Becoming Homeowners?
Sep 01, 2022 02:02PM ● By Jeannie Quick, Sunflower Real Estate Group
There are several benefits to owning your home. A significant one, especially when inflation is high like it is today, is that homeownership can help protect you from rising costs. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains: “In the 1970s, when inflation was running around 10%, home prices were rising at approximately the same rate. Renters actually have a harder time in inflationary periods, because rents tend to rise along with inflation, whereas mortgage payments stay the same for homeowners with fixed-rate mortgages.”
When you buy a home with a fixed-rate mortgage, you can lock in what’s likely your biggest monthly expense—your housing payment—for the duration of that loan, often 15-30 years. That gives you a predictable monthly housing expense that can benefit you in the short term, but you’ll also gain equity over time as your home appreciates in value and you make your monthly mortgage payment. And with that growing equity, your net worth will increase as well. In fact, the latest data from NAR shows the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000. That means a homeowner’s net worth is nearly 40 times that of a renter.
Bottom Line
The U.S. homeownership rate is growing. If you’re ready to purchase the home of your dreams, let’s connect so you can begin the homebuying process today.
And Now About Selling
Recent data from NAR tells us it’s still a great time to list your house. Inventory is lower than it was at this time last year, so your house should sell quickly and get multiple offers. Feeling motivated? if you’re ready to capitalize on today’s sellers’ market let’s talk.
1. Housing inventory is lower than last year by 13%—How this benefits you: When inventory is low, your house is in the spotlight and will get attention from many eager buyers.
2. Since September 2020, home prices nationwide are up 13.3%—How this benefits you: Higher home prices mean your house may sell for more than you’d expect.
3. Homes are on the market for a median of just 17 days—How this benefits you: A fast sale means you can close this chapter and move on to your next home sooner.
4. Sellers are receiving an average of 3.7 offers—How this benefits you: You’ll likely have several offers to choose from and can pick the one that’s best for you.
I would like to have some Real Estate questions from you, email them to me at [email protected]. Until next month, Jeannie
Information from the National Association of Realtors
When you buy a home with a fixed-rate mortgage, you can lock in what’s likely your biggest monthly expense—your housing payment—for the duration of that loan, often 15-30 years. That gives you a predictable monthly housing expense that can benefit you in the short term, but you’ll also gain equity over time as your home appreciates in value and you make your monthly mortgage payment. And with that growing equity, your net worth will increase as well. In fact, the latest data from NAR shows the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000. That means a homeowner’s net worth is nearly 40 times that of a renter.
Bottom Line
The U.S. homeownership rate is growing. If you’re ready to purchase the home of your dreams, let’s connect so you can begin the homebuying process today.
And Now About Selling
Recent data from NAR tells us it’s still a great time to list your house. Inventory is lower than it was at this time last year, so your house should sell quickly and get multiple offers. Feeling motivated? if you’re ready to capitalize on today’s sellers’ market let’s talk.
1. Housing inventory is lower than last year by 13%—How this benefits you: When inventory is low, your house is in the spotlight and will get attention from many eager buyers.
2. Since September 2020, home prices nationwide are up 13.3%—How this benefits you: Higher home prices mean your house may sell for more than you’d expect.
3. Homes are on the market for a median of just 17 days—How this benefits you: A fast sale means you can close this chapter and move on to your next home sooner.
4. Sellers are receiving an average of 3.7 offers—How this benefits you: You’ll likely have several offers to choose from and can pick the one that’s best for you.
I would like to have some Real Estate questions from you, email them to me at [email protected]. Until next month, Jeannie
Information from the National Association of Realtors