You're reading...
Market News and Trends

The Value Of Home Ownership


I just posted a very good article on AustinMarketInfo.com:

NAR Buyer and Seller Survey Shows Value of Long-Term Home Ownership (RISMedia, 11/09/2010)

Key points:

  • Home buyers are taking a longer term view of home ownership than in the past.
  • “Even with several years of price declines, the typical seller who purchased a home eight years ago experienced a median equity gain of $33,000, a 24% increase, while sellers who were in their homes for 11-15 years saw a median gain of 40%.”
  • First-time buyers bought homes averaging 1,540 SF, and 93% of them took advantage of homebuyer tax incentive programs.
  • In this 2010 NAR study, first-time homeowners accounted for 50% of all home sales up from 47% last year.  (I have not been an advocate of the homebuyer tax credit programs, but they did motivate some buyers to accelerate their plans.)
  • Repeat home buyers bought homes averaging 2,000 SF in size.
  • For Sale By Owner transactions reached an all-time low in 2010 of 9% of homes sold (5% after factoring out various kinds of prearranged sales, and even less if rural sales are removed).

The first two bullets are most important in my opinion.  If you review the history of real estate sales over many decades, property gained value over any ten-year period.  I have pointed out to my clients that in the Austin area, even after the past two years of recession, homes have gained value over any five-year period.  (See AustinMarketDashboard.com for extensive data and discussion.)

As the RISMedia article points out, “flipping” houses is almost nonexistent these days, but for property owners who stay put for at least 5 to 10 years, real estate remains a great investment.  By all appearances, we are at or near the bottom of the current market cycle so it’s a great time to buy … but any time can be a great time to buy if it’s right for you and you are willing and able to take the long view.

Advertisements

About Bill Morris, Realtor

More than thirty years of business experience (high tech, client service, business organization and start-up, including many years in real estate) tell me that service is the key to success and I look forward to serving you. I represent both buyers and sellers throughout the Austin metropolitan area, which means first-hand market knowledge is brought to bear on serving your needs: -- Seller Representation is a comprehensive process that begins with thorough market analysis and consultation, continues with properly staging the home to achieve the highest price possible in a reasonable time on market, a complete program of marketing and promotion, ongoing updates and communication, closing coordination, and follow-up throughout (and after) the sale. -- Buyer Representation is also full service: shopping, previewing, price and market consultation, contracting, negotiating, coordination of inspections, appraisals, repairs, and closing details, and follow-up beyond the closing of your purchase to ensure your lasting satisfaction. Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. I go the extra mile to help you achieve your goals. That's why I constantly research the market and property values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative advertising and marketing techniques to attract potential buyers.

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: