Susan Rauth » homeowners

Confidence in value of homeownership persists through bust, survey shows

Omahaadmin13 — Wed, 20 Apr 2011 15:01:41 +0000

The real estate bust appears to have done little to alter Americans’ confidence in the investment value of homeownership.

A robust 81% of adults said buying a home is the best long-term investment a person can make, according to a national survey by the Pew Research Center in Washington.

“Owning a home is really a part of the American dream, and that is just part of the American psyche and something that people aspire to,” said Kim Parker, associate director for the center and one of the study’s authors.

The study’s results were unexpected, given the deep plunge in home prices and the fallout from the mortgage crisis, she said. Homeownership topped the list of long-term financial goals for Americans, according to the study; respondents rated homeownership, as well as living comfortably in retirement, more important than sending children to college or leaving offspring an inheritance.

The public’s faith in real estate has been bruised since the last time a comparable survey asked people about the wisdom of investing in real estate. A total of 37% of respondents said they “strongly agree” that homeownership is the best investment a person can make while 44% said they “somewhat agree.” The same question was asked by a CBS News/New York Times survey in 1991, and at that time 49% “strongly agreed” and 35% “somewhat agreed.”

“The study results are surprising in that so many households still believe that homeownership is a good investment, even after the plunge in home values that has occurred over the past couple of years,” said Celia Chen, a housing economist for Moody’s Economy.com. “The preference for homeownership has deep roots in the history of this nation, and apparently even a severe correction in house prices can shake American’s belief in homeownership only slightly.”

The telephone survey was comprised of a nationally representative sample of 2,142 adults conducted from March 15 to March 29 by Princeton Survey Research Associates International. Interviews were done in English and Spanish. The margin of sampling error for the data is plus or minus 2.7%.

While home prices have entered a renewed decline after showing some improvements last year, many economists believe that the worst of the housing crisis is probably over. That sentiment could help to explain the resiliency in Americans’ optimism.

“People may have the feeling that the worst is behind us,” Parker said.

Though other investments such as stocks tend to produce a better return, the housing market has generally avoided the wild swings that the stock market has over time, potentially helping to explain real estate’s lasting allure, Parker added.

Homeowners in the surveywere more positive about the financial wisdom of owning a home than were renters. But even among renters, the desire for homeownership remains strong, according to the survey’s findings. Just 24% of renters surveyed said they rent out of choice and 81% said they would like to buy.

The decline in values has struck a wide swath of Americans. About half, or 47%, of homeowners said their property is now worth less than when the recession began, and 31% said the value of their home has not improved. Just 17% said their home is worth more than before the recession.

Of those who said their properties have lost value, 86% said they expect it to take at least three years for values to recover, 42% said at least six years and 10% said they expect a recovery in 10 years or more.

Despite those sentiments, 82% of homeowners who indicated their home is worth less than before the recession said homeownership is the best long-term investment a person can make.

American Attitudes About Home Ownership

Omahaadmin13 — Thu, 10 Feb 2011 20:57:50 +0000

Original Article –>

According to a NATIONAL ASSOCIATION OF REALTORS® survey of 3,793 adults conducted by Harris Interactive and released in January 2011, home owners and renters agree that home ownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy.

Among the findings of NAR’s “American Attitudes About Homeownership” survey:

The vast majority of both home owners and renters say that owning a home is a smart decision over the long term. Even in today’s challenging economy, 95% of owners and 72% of renters believe that over a period of several years, it makes more sense to own a home.

Home owners are much more likely to be satisfied with the quality of their family and community life than renters. While more than half of owners (56%) are “very” or “extremely” satisfied with the overall quality of their family life, only about one-third (36%) of renters report the same levels of satisfaction. Also, 43% of home owners are “very” or “extremely” satisfied with their community life, compared with 30% of renters.

An overwhelming majority of home owners are happy with their decision to own a home. A full 93% of owners surveyed would buy again.

Most renters aspire to home ownership. The majority of renters (63%) say they are at least somewhat likely to purchase a home at some point in the future. Among them, young adults (18- to 24-years-old) have the strongest aspirations for home ownership.

The survey also confirmed that home owners and renters continue to have concerns about the economy:

In today’s market, many aspiring home owners face worries about job security and credit worthiness. Among renters who are “very” or “extremely” likely to buy a home in the future, three out of five consider confidence in job security or creditworthiness to be an obstacle.

Home owners and renters both believe that the mortgage interest deduction should not be targeted for change. 74% of owners and 62% of renters say it’s “extremely” or “very” important that the MID remain in place.

Given the strong public support of and aspirations for owning a home, we need to keep in place policies that support and encourage responsible, sustainable home ownership.

View survey charts and graphs –>

Stand Up For Homeownership – Why Homeownership Matters Now More Than Ever

Omahaadmin13 — Wed, 09 Feb 2011 20:28:12 +0000

Original Article –>

RISMEDIA, January 14, 2011—As a real estate professional, you know that America is a nation of homeowners—67% of American households are owner-occupied. And housing is a key driver of our economy, accounting for 15% of our Gross Domestic Product in general. Research shows that for every home purchased, $60,000 is pumped into the economy for furniture, home improvements and related items. Plus homeowners pay 80-90% of individual federal income taxes, contributing to federal programs that benefit all Americans.

Yet many recent media reports question the value of homeownership and whether it is worthy of the tax benefits currently available. Some reports contend that changing federal policies and eliminating tax incentives that support homeownership, such as the Mortgage Interest Deduction, might even be in the public’s best interest.

For more than 100 years, members of the NATIONAL ASSOCIATION OF REALTORS® have championed homeownership as a fundamental part of the American Dream. Now more than ever, you must stand up for homeownership. And with the help of the NATIONAL ASSOCIATION OF REALTORS®’ (NAR’s) “Home Ownership Matters” campaign, you can help NAR spread the word about the value of homeownership to your clients, community and policymakers.

“There are some, mostly in academic circles and in the media, who have been questioning the value of homeownership and the importance of incentives for homeowners,” says Pamela Geurds Kabati, vice president of Public Affairs and Consumer Media. “They ask whether we wouldn’t be better off as a nation of renters. As an industry, we have to stand up and say, ‘Absolutely not.’ We need our voice to be loud and clear to influence the court of public opinion and policymakers. Homeownership provides homeowners, their communities, and our country with so many benefits.”

Why Homeownership Matters
Homeownership has a significant, positive impact on net worth, educational achievement, civic participation and overall quality of life. Owning a home is one of the best ways to build long-term wealth. In the past 12 years, a typical homeowner’s net worth has been 31-46 times that of a renter. Plus, most homeowners enjoy stable housing costs. In fact, studies show that fixed rate mortgage payments typically stay the same, while rent has increased at an average rate of approximately 3% per year in the last 10 years.

NAR contends that homeowners contribute more to their communities by voting and volunteering more. They do not move as frequently as renters, bringing stability to neighborhoods, which helps reduce crime and support upkeep.

And it has been shown that homeowners enjoy a better quality of life. They tend to be happier and healthier, and feel a greater sense of control over their lives. They are free to redecorate, renovate and modify their homes as they wish. And their children tend to do better in school and stay in school longer, according to a recent white paper by NAR titled “The Social Benefits of Home Ownership.”

Help Counter the Critics
To learn more about why Home Ownership Matters, visit www.REALTOR.org/homeownership where you’ll find everything you need to keep you current on the debate, including articles, stats and data, blog posts, videos, and webinars.

You’ll also find a wealth of resources that you can use to spread the word, including sample letters and articles you can adapt and send to members of the local media and a Home Ownership Matters widget that you can put on your website. You can also download a flyer and order Home Ownership Matters buttons you can hand out to clients. There’s also a free Mortgage Interest Deduction iPhone app, available through iTunes, which you can use to show renters how much buying power the deduction gives them or to show homeowners how much money it saves them.

NAR will continue to fight to preserve this important institution through advocacy and outreach to lawmakers, consumers and the media. NAR will continue to lobby policymakers in Washington, DC, and its consumer website, www.Houselogic.com, will help reinforce the benefits of homeownership to your customers and prospects.

So spread the word. Because homeownership really does matter.