Homeownership: “A Man Is Not A Complete Man, Unless He Owns A House”

The famous quote by Walt Whitman, “A man is not a whole and complete man, unless he owns a house and the ground it stands on,” can be used to describe homeownership in America today. The Census revealed that the percentage of homeowners in America has been steadily climbing back up since hitting a 50-year low in 2016. The homeownership rate in the first quarter of 2018 was 64.2%, higher than last year’s 63.6%.

Chief Economist, Dr. Ralph McLaughlin, in his VUE Blog gave these new homeownership numbers some context:

“The trend is clear: the homeownership rate has been ticking up for five consecutive quarters, and the number of new renter households has fallen for four consecutive quarters. Owner-occupied households grew by 1.345 million from a year ago, while the number of renters actually fell by 286,000 households.

The fact that we now have four consecutive quarters where owner households increased while renter households fell is a strong sign households are making a switch from renting to buying. This is a trend that multifamily builders, investors, and landlords should take note of.”

In a separate article comparing the rental population in America to the homeowner population, Realtor.com also concluded that the gap is now shrinking:

“The U.S. added 1.3 million owner households over the last year and lost 286,000 renter households, the fourth consecutive quarter in which the number of renter households declined from the same quarter a year earlier. That could pose challenges for apartment landlords, who are bracing this year for one of the largest infusions of new rental supply in three decades.”

America’s belief in homeownership was also evidenced in a survey conducted by Pew Research. They asked consumers “How important is homeownership to achieving the American Dream?”

The results:

  • 43% said homeownership was essential to the American Dream
  • 48% said homeownership was important to the American Dream
  • Only 9% said it was not important

Bottom Line

Homeownership has been, is, and always will be a crucial part of the American Dream.

About Carol Juntunen: I'm a Realtor® with Baird & Warner in the Chicago area. I make life easier for buyers, sellers and renters! Ready to sell? Contact me for a FREE market analysis of your property. Thinking about buying? Let's get started on your home-buying journey. Don't you want to feel the pride and security of owning your own home?

Ready to buy, sell or rent? Call or text me today:
Cell:    224-523-2217
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com

Designations: 
Certified Probate Real Estate Expert (CPRES)
Seniors (50+) Real Estate Specialist (SRES)
Certified Negotiation Expert (CNE)
Pricing Strategy Advisor (PSA)
Certified Staging Consultant (CSC)
Internet Marketing Expert (e-PRO)
Military on the Move Certified

 

3 Tips for Making Your Dream of Owning a Home A REALITY!

Some Highlights:

  • Setting up an automatic savings plan that saves a small amount of every check is one of the best ways to save without thinking much about it.
  • Living within a budget right now will help you save money for down payments while also paying down other debts that might be holding you back.
  • What are you willing to cut back on to make your dreams of homeownership a reality?
About Carol Juntunen: I'm a Realtor® with Baird & Warner in the Chicago area. I make life easier for buyers, sellers and renters! Ready to sell? Contact me for a FREE market analysis of your property. Thinking about buying? Let's get started on your home-buying journey. Don't you want to feel the pride and security of owning your own home?

Ready to buy, sell or rent? Call or text me today:
Cell:    224-523-2217
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com

Designations: 
Certified Probate Real Estate Expert (CPRES)
Seniors (50+) Real Estate Specialist (SRES)
Certified Negotiation Expert (CNE)
Pricing Strategy Advisor (PSA)
Certified Staging Consultant (CSC)
Internet Marketing Expert (e-PRO)

Your Opportunity to Achieve the American Dream Keeps Getting Better!

Forbes.com recently released the latest results of their American Dream Index, in which they measure “the prosperity of the middle class, and…examine which states best support the American Dream.”

The monthly index measures several different economic factors, including goods-producing employment, personal and commercial bankruptcies, building permits, startup activity, unemployment insurance claims, labor force participation, and layoffs.

The national index score was rounded out to 100.0 in January as a baseline for comparison and it rose the fourth straight month in a row to 101.8.

Alaska, coming in at 89.4, represented the lowest score on the index due in part to the recent collapse in oil prices. In contrast, Wyoming came in with the highest score at 115.1. The full results can be seen in the map below.

Forbes Senior Editor Kurt Badenhausen explained why many states saw a boost in the index last month:

“The American Dream Index rose for the fourth straight month to 101.8 propelled by gains in goods-producing jobs and building permits, as well as declines in unemployment claims and mass layoffs.

Goods-producing jobs (manufacturing, mining, construction and agriculture) were up for the ninth straight month in May…Building permits rose for the fourth straight month compared to the prior year.”

Bottom Line

The American Dream, for many, includes being able to own a home of one’s own. With the economy improving in many areas of the country, that dream can finally become a reality.

About Carol Juntunen: I'm a Realtor® with Baird & Warner in the Chicago area. My intention is to provide insights and information to empower you to make confident, informed real estate choices and decisions, and guide you through the home buying and selling process.

How can I help you achieve your real estate goals?

Ready to buy or sell? Call or text me today:
Cell:    224-523-2217
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com

Designations: 
Certified Probate Real Estate Expert (CPRES)
Seniors (50+) Real Estate Specialist (SRES)
Certified Negotiation Expert (CNE)
Pricing Strategy Advisor (PSA)
Certified Staging Consultant (CSC)
Internet Marketing Expert (e-PRO)

Buying Is Now 33.1% Cheaper Than Renting in the US

The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers actually show that the range is an average of 3.5% less expensive in San Jose (CA), all the way up to 50.1% less expensive in Baton Rouge (LA), and 33.1% nationwide!

Other interesting findings in the report include:

  • Interest rates have remained low and, even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation.
  • With rents & home values moving in tandem, shifts in the ‘rent vs. buy’ decision are largely driven by changes in mortgage interest rates.
  • Nationally, rates would have to reach 9.1%, a 128% increase over today’s average of 4.0%, for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.

Bottom Line

Buying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, let’s get together to find your dream home.

About Carol Juntunen: I'm a Realtor® with Baird & Warner in the Chicago area. My intention is to provide insights and information to empower you to make confident, informed real estate choices and decisions, and guide you through the home buying and selling process.

How can I help you achieve your real estate goals?

Ready to buy or sell? Call or text me today:
Cell:    224-523-2217
Website: www.caroljuntunen.com
Email:   carol.juntunen@bairdwarner.com

Designations: 
Certified Probate Real Estate Expert (CPRES)
Seniors (50+) Real Estate Specialist (SRES)
Certified Negotiation Expert (CNE)
Pricing Strategy Advisor (PSA)
Certified Staging Consultant (CSC)
Internet Marketing Expert (e-PRO)