Fannie Mae released a study on the economics of home ownership that indicates although the housing downturn has forced so many out of their homes the aspiration to buy a home remains strong. The study included reviewing the experiences of residents in three different cities: Phoenix, Seattle, and Cleveland. Out of these three the Phoenix metropolitan region experienced the most significant loss in housing values, despite this though, Phoenix residents were the most convinced that buying a home versus renting a home is a better financial and investment decision. Phoenix saw three-quarters of the residents surveyed respond in favor to owning a home than renting, compared to Cleveland with 72% of its residents responding in support and Seattle with 69%.
Fannie Mae’s chief economist Doug Duncan points out that most of this response is due to affordability, but that people have begun to have a psychological change in how they regard homeownership: homes are now considered places to live and grow rather than just an investment to flip later on.
Duncan notes that the market has changed significantly from years past and that overall homeownership rates will decline because incomes will fall behind affordability. The period of time it takes a homeowner to recover equity and build some will also depend on local economic factors effecting real estate, such as employment and the value of land. It will essentially take more time for owners to break-even now.
If you’re aspirations are to own a home again, or move-up from your current home to something different than you should contact Occasio Realty to speak with one of our agents. We specialize in all areas of the metropolitan Phoenix market, including: Tempe, Mesa, Chandler, Scottsdale, and Gilbert. Our agents have resourceful relationships with title companies, lenders, and home inspectors to help facilitate and successfully bring your goal of homeownership to realty. 480.699.1820
Source: Wall Street Journal. “Even in Hard-Hit Phoenix, the American Dream Endures”. 12/16/2010
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