â€œEnough with the doom and gloom about homeownership.â€ â€“ WSJ 9/16/2010
WOW! If that quote was attributed to the National Association of Realtors or the National Association of Home Builders, it would have been quickly dismissed. However, it was the Wall Street Journal that was calling for the end of the â€˜doom and gloomâ€™ talk surrounding real estate.
We are finally seeing a powerful backlash to all theÂ recent claimsÂ that homeownership should never have been part of the American Dream. It is about time!
We have been posting on the financial advantages and the other non-financial benefits of homeownership for over a year. We must admit that, at times, we felt very lonely. It now seems that we are part of an ever growing army of believers preaching the advantages and opportunities available in todayâ€™s real estate market. Who have joined this cause? Letâ€™s name a few.
In an article last week, 10 Reasons To Buy a Home, Brett Arends reported:
Sure, maybe thereâ€™s more pain to come in the housing market. But when Time magazine starts running covers that declare â€œOwning a home may no longer make economic sense,â€ itâ€™s time to say: Enough is enough.
He then posted 10 reasons to buy a home today:
Karl E. Case is a professor emeritus of economics at Wellesley. Professor Case is also co-creator of Standard & Poorâ€™s Case-Shiller House Price Index and is recognized as the one of the foremost authorities on real estate today. In a New York Times op-ed piece earlier this month titled, A Dream House After All, he said:
I have never quite understood what the American dream really means when it comes to housing. For some people, it means having a solid and fairly safe long-term investment that is coupled with the satisfaction of owning the house they live in. That dream is still alive.
Others, however, think the American dream is owning property that appreciates by 30 percent a year, making a house into a vehicle for paying bills. But those kinds of dreams have become nightmares for the millions of foreclosed property owners who have found themselves sliding toward bankruptcy.
But for people with a more realistic version of the American dream, buying a house now can make a lot of sense.
The only segments of the housing market that are showing sales growth are the price points over $1 million. That market is up 6.1 % in the second quarter of this year vs. the second quarter last year. A recent survey showed that over 30% affluent buyers are planning to either build/buy a new primary residence or a second/vacation home in the next twelve months. It appears the wealthy believe now is the time to buy!
Fannie Mae just released their National Housing Survey. The survey reported:
OurÂ iconic financial newspaper,Â our nationâ€™s real estate pricing expert, the wealthiest people in the country and 70% of everyone else think now is the time to buy a home. It probably makes sense to listen to them.
Article Courtesy of Real Estate Analyst Steve Harney, Keeping Current Matters
Willis Allen Real Estate
"Creating Happy Endings, One House at a Time"
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