Home Ownership Still Key Part Of American Dream According To This Charleston SC Realtor
As a Charleston SC Realtor it is important to keep up with what’s going on in the real estate market–both locally and nationally.
If you have been following the real estate market, then you know that prices continue to increase. Buyer demand remains strong, but inventory continues to lag far behind to keep up with it.
The American Dream of home ownership is alive and well. What’s behind this strong demand?
The fact that many people realize that home ownership is the key to building long term wealth.
In fact, that the average net worth of a home owner is now 45 times greater than the average net worth of a renter.
This ties into another aspect of the American Dream–being able to send your children to college down the line.
Another factor driving this pent up demand is the fact that the rental market has been just as hot as the retail market over the last few years.
Many renters are seeing their rents continually increase–and in many cases, property management companies would prefer to rent to new tenants than keep current tenants and simply raise the rent.
Not only are rents going up, but finding suitable living accommodations is harder when you rent–there is simply too much competition.
Plus, many renters are not only frustrated by having to go through the moving process every couple of years, they are starting to understand the fact that they aren’t getting anything out of their investment like a home owner does.
Add in the fact that rents are continuing to go up and will continue to do so, when home owners get their monthly housing payment locked in for 30 years and home ownership simply makes too much financial sense.
Especially when you can pay less for a mortgage than renting in the majority of cities nationwide.
As a result, we have pent up buyer demand that shows the American Dream is still a strong motivational factor.
But that’s not just me saying it, so are the American people.
Each year, Gallup polls Americans and asks them “What’s your choice for the best long term investment?”
For the fourth straight year, real estate tops the list.
One third of American rank real estate as their top choice.
It’s interesting to break down the results.
The poll shows that real estate ranks as the top long term investment strategy amongst men and women.
Even when you break down the results based on income, again real estate comes out on top.
And when broken down by age group, real estate is still the top investment across generational lines.
So, as the market numbers and this latest poll indicate, buyers are strong.
Inventory, however, remains too low. Here is a look at inventory numbers:
A “normal” real estate market will have 6 months inventory. We haven’t been close to 5 months since last summer, and since the end of 2016 we can’t even get to 4 months.
As a result, home values will continue to drive upwards–it’s simple supply and demand economics.
However, when you are looking to buy the next house, you have to be wary of not only of rising home values, but also the threat of increasing interest rates.
We are entering the hot time of year for new listings to hit the market.
The demand is there–we just need inventory to catch up.
Happy house hunting!
For the latest real estate market news, check out my other blog.
If you are thinking about buying a home, then be sure to check out my Pam Marshall Realtor website.
If you need a Charleston SC Realtor, then contact me today!