Home Ownership Remains The American Dream
INDUSTRY NEWS, SHASTA COUNTY, TIPS FOR BUYERS
April 15th, 2011
Despite the housing bust and the foreclosure mess, a recent study by Pew Research Center revealed 81% of Americans still believe homeownership is the best long-term investment. That figure is down only slightly from the 84% of respondents who strongly or somewhat agreed to the same question in 1991. 2142 adults were surveyed in early March 2011.
Here are some other interesting findings:
- 47% of the 1222 homeowners surveyed said their home is worth less now than before the recession began
- 31% said their value is the same
- 17% said their home is worth more
Overall, home prices nationwide are down about 31% from pre-recession levels according to the S&P/Case-Schiller Index. However, homeowners still have a more optimistic outlook on owning vs. renting. Only 31% of renters strongly agree homeownership is a good long-term investment compared to 41% of homeowners.
The sample group consisted of respondents as follows:
- 57% own a home
- 30% are renters
- 13% have other living arrangements such as living with family
Only 24% of renters say they rent by choice. The overwhelming majority would prefer to own if they could. An associated question regarding long term financial goals showed a high correlation between “being able to live comfortably in retirement” and “being a homeowner” instead of a renter. 80% of respondents rated both as extremely or very important.
The “wealth effect” created by the market bubble during which time home prices soared 137% changed consumer behavior. Spending and borrowing surged during the run-up in prices then quickly reverted back to more sane behavior once the bubble burst.
One final conclusion drawn from the study is the longer people have been homeowners, the more likely they believe homeownership is a good investment. They also correctly believe the bubble led to inflated home prices unaffordable to young Americans in their 20’s and 30’s.
The value drop in the Redding/Shasta County area is closer to 50%. The fact that the majority of local home buyers today are first-time buyers and investors confirm this studies findings-homeownership is still the American dream!
530-224-6767 0r 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER DOWNTOWN REDDING
NEARLY 30 YEARS LOCAL REAL ESTATE SALES EXPERIENCE
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