First time home buyers make up a little less than 40% of the market. That is interesting because the market depends on these people taking their first steps into home ownership.
The rest of the market needs that 37% first timers to buy their homes so they can “move up” to their second, usually more expensive home.
The reason most say they purchased was because they just wanted to own their home. Owning the homes we live in is a rewarding and safe feeling. Traditionally, it seems that most people rent until they can afford to buy. The rumors I’ve heard in recent years is that there is a growing trend to rent on purpose and forever. It appears there is a mentality that renting is more convenient. Some people don’t want to bother with home ownership. They think it is cheaper, they are not tied down, and have less work since they don’t have to mow the lawn or shovel the walks.
Sometimes, rent is not cheaper. Rents flucuate. Right now, there are homes you can buy that are cheaper than some rents for the same size, type of property. When the real estate market is good, home prices go up an rents go down and vise versa.
When you rent, you are paying someone else’s mortgage. Your landlord is taking your rent money and putting toward the mortgage he has on the property and building his own equity. When you are buying, your money goes toward the cost of your home and your own future.
There have been a lot of people that have lost fatih in this concept since they are upside-down in their homes right now. I can understand that frustration but they were, when they bought their homes, believing that home was worth the price they paid.
History shows us that the market will have its ups and downs. There has never been a market where home values went down and stayed down forever. If you are upside-down in your home, but you still love your home for all the reasons that made you buy it in the first place, stick it out. You have to have a place to live. Isn’t it better to be paying toward your own home ownership than someone elses?
No matter what your home’s value is, someday you will have it paid off. It WILL even be worth more than you paid. I believe that!