House and Home August 2011
Owning a Home Is Still the American Dream
Photo: © Lawcain | iStockphoto

The housing market has been volatile in the past few years. Prices have tumbled, foreclosures and short sales are crowding the market, and mortgages are hard to come by. Would anyone still consider a home a good investment?

As it turns out, most Americans believe that owning a home is a great investment. In a recent survey commissioned by the National Association of Home Builders (NAHB), people planning on voting in 2012 were asked their views about the current real estate market. The survey found that Americans still see value in owning real estate, despite the turbulent market. Seventy-five percent of those surveyed said that owning a home was worth riding out the up-and-down housing market. Of those who currently own a home, 95 percent reported feeling happy about their decision to buy their home. And 80 percent of these homeowners would also recommend home ownership to their friends and family not yet on the property ladder.

The survey also asked voters who do not currently own a home whether they would want to enter the real estate market. Almost three-quarters – 73 percent – said that owning a home was a goal they wanted to achieve in the future. The biggest obstacle to home ownership for this group of Americans is finding the money for the down payment and closing costs.

In terms of investment potential, Americans might have doubts about the stability of the stock market, but they still have faith in the housing market. Most voters surveyed thought that owning real estate and contributing to retirement savings programs were the best investments they could make to protect their financial future. But perhaps the most telling finding of the survey is how voters ranked the importance of owning a home. Most Americans felt that home ownership is just as important as achieving success at work or paying for a child's education. With so many Americans measuring their financial success by the size of their real estate portfolio, the housing market should have a steady supply of buyers for years to come.

Consumer confidence is a clear indicator of the health of any market, and the real estate market is no exception. Americans expressing strong sentiments about home ownership is a positive sign for real estate.

William Brundage  -  (248) 980-2455 House and Home  -  August 2011 

William Brundage, Coldwell Banker Realty, 294 E Brown St , Birmingham MI 48009
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