Hello! Today we are going to look into specifics on why people buy homes versus rent. Before we do, look at the visual below. It shows existing home sales from January of 2011 until July of this year. You can really see how the housing market has improved over time.
And according to Greg McBride, Bankrate.com’s Senior Financial Analyst:
We just need to get through this crazy government shutdown and the debt ceiling issues, and hopefully the housing market will continue to thrive.
So now let’s look at why people buy homes. You may have ideas that immediately pop in your head. See if they are on this list from Fannie Mae:
You’ll notice that the top two reasons are about family: wanting a better place to raise kids and being in a place that feels safe. When people are looking to buy, they often will use the ratings of school districts to determine where they want to live. Greatschools.org is a website that sees a lot of traffic from potential buyers. Regarding safety, savvy buyers will do their homework and look at city websites for crime statistics, sex offenders, etc. Here’s an example of a website for Norfolk, VA that allows you to search in detail about crimes: http://norfolk.va.crimeviewcommunity.com/default.aspx
The third top reason that people buy homes is the desire for more space. Anyone who has lived in a small apartment or house in his or her lifetime can certainly appreciate that one. Coming in at number four is the freedom to make changes to the home. People like to put their own mark on where they live, and having the freedom to renovate however you wish can be a wonderful thing. Renters know that more often than not, landlords do not allow changes to be made.
Finally, the fifth reason for wanting to own a home is that people think it is a better investment than renting. Tomorrow, we will specifically talk about this reason and discuss interesting statistics that support it.
So, were your reasons in the top five? I bet at least a few were! See you tomorrow!