Despite the strong sales we’re seeing here in the Portland real estate market and higher than average appreciation rates combined with interest rates still at historical lows, we’re still seeing an overall decline in the U.S. for home ownership and part of that is due to the fact that 1 in 3 Americans currently has some sort of debt in collections.
There are additional contributing factors, like recent college grads having high school loan debt, housing prices climbing and tighter restrictions on lending. I suspect however there is also some growing concern among potential home buyers about the U.S. economy in general causing them to hold off on owning a home.
It really is a shame to see this as owning a home is by far a more financially stable position to be in, the majority of the time, than renting. With renting, you’re just throwing your money away every month adding to someone else’s investment portfolio rather than your own.
I’ve only broken even on one of the homes I’ve owned and that was one I bought in 2006 (yup, right at the height of the market before the crash) and sold in 2010 (yup, at the bottom of the market) and I still broke even. Every other home I’ve owned I’d MADE money on, often significant; every time. Can’t do that renting.
Hopefully we’ll see this shift and reach back into positive numbers soon; I’ll certainly be out there doing my part!
In the meantime, the next time you write that rent check, just think about how much nicer it would be for that money to be going towards an investment of your own, rather than your landlord.
Source: CNN Money
Your Portland Realtor, Scott McDonalcd
Everything. Portland. Real Estate.
Tags: home ownership declining