People who bought homes in the last year plan to stay in them a little longer than before. That’s one finding in this National Association of Realtors study of 8,000 home buyers who bought in the past year. You may find the statistics interesting if you are thinking of buying real estate.
First Time Buyers
First time buyers made up 50% of all buyers between June 2009 and June 2010, NAR said. The previous high for first time home buyers was 44% in 1991.
85% of those surveyed view their home as a good investment
Almost half of those surveyed think investing in housing is better than stocks.
27% of those buyers received help with the downpayment, up from 22% last year. Talk to a lender to see how a gift of this sort could help get you into your first home to take advantage of today’s high affordability and low rates.
First time buyers in this survey planned to stay in the home for 10 years, up from 7 years. Repeat buyers planned to stay for 15 years. NAR President Vicki Cox Golder states "This underscores two simple facts – home ownership encourages stability and the longer you own, the better your investment."
Home Sellers
The NAR study states that even with a few years of price declines, a typical seller who bought their home 8 years ago saw a 24% median equity increase. Those who were in their home for 11-15 years saw a median gain of 40%.
"Sellers who purchased at the top of the market and had to sell in a short time frame were hurt by the price correction, but the vast majority who are able to stay for a normal period of home ownership generally built up enough equity for a trade-up purchase," Golder said. "Despite swings in the housing market in recent years, the fact is most long term owners see healthy gains in the value of their property."
One take-away point common to both groups: view real estate as a long term investment.
Are you thinking of making a long term investment in real estate? Today’s interest rates have made housing very affordable. Low interest rates saves thousands over the course of the loan – more so than a tax credit. If you are thinking about getting a place of your own, take a look the property for sale in Wisconsin at firstweber.com, sign up for a My First Weber account to get new listings via email. It’s free and tailored to your needs – YOU select the criteria and we send it. We’re hoping you’ll turn to First Weber when it is time for you to buy a home in Wisconsin.
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