Unlike in many other countries, home ownership is still a very big part of the American dream. Young people are in the market on the hunt for their first homes. First time home buyers in many instances drive the real estate market as people sell homes to move up to buyer bigger homes needed to accommodate larger families. Then, as the kids leave the nest some will downsize in preparations for eventual retirement. When retirement comes others will move from cold to warm places. Through it all, people will own 3 or more homes during their working lives depending on circumstances.
Home ownership is an important part of wealth generation over time. Homes is good locations tend to appreciate and also act as a hedge against inflation. Home equity is like a savings account sitting there for the time when the money may be needed to pay for home care or a move into a senior living community. In addition, the US tax code has always favored home ownership as mortgage interest and property taxes have usually been deductible. So, there has been a favorable tax treatment related to home ownership that has also driven the market.
Of course today, home prices in many areas are at all time highs. It is clearly a sellers market, which makes buying a home harder; but with mortgage interest rates being so low, if someone is able to buy a home at least the payments will be reasonable. Home ownership is an important part tp achieving the American Dream.
At Paragon Home Resources, we work with customer to sell and buy homes all over the country. We assist with making life decisions that are important to the American Dream.
