With all the talk about the American Dream dying, it is good news to hear that some people are quite happy in their home. Actually, research shows that most are happy in their homes despite the drop in value in recent years.
The eighth quarterly “Allstate-National Journal Heartland Monitor Poll: The American Dream” revealed great statistics about why people still believe in the American Dream:
- Nearly 90% of homeowners asked say they would buy their same homes again. And among those with homes with lost value, the same percentage said they would buy their home again.
- People believe that buying a home was the second best investment (24% ) ahead of saving money in the bank (20%), and investing in the stock market (6%). The best investment is believed to be retirement savings, according to 38% of those asked.
- A majority, 58% of those who believe the housing crisis will remain a serious problem would still recommend buying a home.
It seems that despite the disappointment in government and lending institutions, despite and languishing economy and the overall mood in the country, most believe that if you can, you should buy a home.
Can you believe how perfect the timing of this news? This Spring may be your chance to get into a market that is one of the best in years. According to the chief economist of the National Association of Realtors, “Housing affordability conditions have been at record levels and the economy has been improving.”
This does not mean the housing market doesn’t have some major problems. In fact, Yun stresses that the market is constrained by two problems, first is very tight credit and second is that appraisals are not supporting the prices of the homes. This causes many contract cancellation.
For you this can mean an opportunity. If you are credit worthy of a mortgage, you have great negotiation power. Sellers are ready to negotiate with someone who has a strong pre-approval ready and shows motivation to buy. A serious seller is realistic about his or her home price and is aware of the constraints imposed by the banks and appraisers.
Arm yourself with a savvy real estate agent who understands this, and go find that home. Happy hunting!
Is there anything that makes you think that this is a bad time to buy? I am really curious as to why some of you are holding back when you are financially secure to buy?