Home Ownership Drops but – Owning a Home Rocks!
There’s been a lot of discussions lately regarding home ownership. And frankly, there are solid arguments in favor of renting versus owning a home today. The primary argument against home ownership today revolves around appreciation in the values of real estate. Over the last 2-3 year real estate has not gone up in value. In fact, home values have gone down – up to 50% or more in places. And home ownership is down as well.
Home ownership should not be taken lightly. Sure we’d all like to make gains on our real estate as we have done so almost consistently for 70+ years. But as we have learned from the past few years, nothing is guaranteed. Yet, now that we have weathered what seems like the worst of the storm, let’s remember what home ownership is all about. And let’s look at the past to help us in the future. Imagine that.
America is a nation of possibilities; a land of opportunities where seemingly anyone can obtain “A Better Life”. And one of the components of the “American Dream” is Home Ownership. Home Ownership Offers:
• A sense of identity
• A sense of status
• An investment for the future
• A way to get ahead to “A Better Life”
Over the last 90 years, Home Ownership has increased substantially from 46% in the 1920 to 67.3% first quarter 2009 but has dropped over the last year to 66.5% for the 4th quarter of 2010.
Much of this increase & decreases have a direct correlation to major national events that took place over the last 100 years.
1920’s –Consumerism 45%
1930’s –The New Deal: The National Housing Act of 1934 48%
1940’s –Post WWII: GI Bill of Rights 43%
1950’s –Grabbing the American Dream 54%
1960’s –Society Shifts, The Good Life, Opportunity 62%
1970’s –Inflation, Vietnam War, Oil Crisis 62%
1980’s –Deregulation, A Free Market, Wall Street 64%
1990’s –Debt Increases, Flat Earnings 64%
2000’s –The Age of Real Estate, Easy Money 67%
2010 — Mortgage Crisis, Banking fraud, Global Issues 66.5%
On average, homes have appreciated in value 5% a year – with a few exceptions (2000 – 2006 values rocketed up & 2007 through 2010 values dropped).
On average, inflation-adjusted home prices have fluctuated between $125,000 to $150,000 – with a few exceptions: Below average – $100,000 from (1920 through 1942 The Great Depression) and Above the average – $265,000 as a peak from (2000 through 2006).
So what do we do today when asked if home ownership is a good thing? I would say yes. Home ownership offers so much more than the potential investment. And I do believe that over the long-term, real estate values will go up. I’m not even going to talk about the tax-deductions here -that’s another story.
There’s nothing like painting a wall a special color, or gardening outside your front door, or coming “home” after a long day and just relaxing in what it yours – Home Ownership Rocks.
—For more on this topic or questions regarding real estate in Steamboat Springs, feel free to call Charlie at 970-846-6435 or write me an email at: firstname.lastname@example.org. I will answer your post or email promptly with candid and informed answers. Click here to view all properties in Steamboat Springs in “real time” — This is one of the few real estate sites showing all foreclosed and all short sale listings in real time and updated every few minutes.