Homeownership is Still the American Dream
The National Association of Realtors (NAR) recently released its annual Housing Opportunity Pulse Survey which questioned Americans from across the nation on their attitudes towards homeownership. According to the survey, homeownership still features prominently as the American dream as nearly 8 out of 10 respondents believe buying a home is a good financial decision.
Also according to NAR and its Pending Home Sales Index, pending home sales have increased for the second consecutive month rising 4.3 percent to 82.3 based on contracts signed in August. The data reflects contracts and not closings. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
That number is still low when compared to August of 2009 when it was up 103.0, but it is still a sign of improvement and we'll take it. It's clear that we still have a ways to go towards a full housing market recovery. Most industry experts agree that we must have further job creation and healthier consumer confidence to achieve that goal. Those surveyed also agreed that job insecurity and the lack of jobs continue to be the primary obstacle to home ownership and market recovery at this time.
For those in a position to buy, it is still a prime opportunity with historically low interest rates and a wide selection of homes that are more affordable now than ever. NAR's survey respondents agreed, with more than two-thirds of respondents (68 percent) saying that now is a good time to buy a home.
If you are currently in the market to purchase a home, be aware that industry insiders are watching inflation rates closely right now. If inflation rates begin to rise, then so will mortgage rates. If mortgage rates rise, it could price many buyers out of their dream home.
To see what specific trends are taking place in your market area, view the graph and feel free to contact a Bean Group sales professional who can provide you with a detailed analysis.