Did you know that June is Home Ownership Month? Now is a great time to celebrate the benefits that homeownership can bring to families, neighborhoods, and communities across America. But this year, with our current housing market landscape, Home Ownership Month looks a little different. Here’s why:
First, let’s look at why many Americans like the idea of having their own home. Homeownership is still very much thought of as a part of the American dream. Nearly two-thirds of millennials and 45% of Gen Z say a desire to be a homeowner is the main reason they buy a home. The idea of building equity through owning a home as opposed to helping someone else financially by paying them to rent is still alive today. Many people choose homeownership because it is a part of our cultural mindset and economy.
It is increasingly evident that COVID-19 and the new work from home standards are driving demand for homes. This situation is increasing home prices across the United States. There is an increasing concern from consumers that there is a housing bubble and speculation about when this bubble will burst. Some interesting statistics on the hot housing market right now:
Google recently reported that the search “When is the housing market going to crash?” had spiked 2,450% in the past month.
More than half of this year’s first-time homebuyers expect some competition, while one in five believe they’re in for a lot of competition.
Homebuyers today are purchasing for many reasons: low interest rates, more flexibility to work from home, a lower house payment versus rent payment, fear of missing out on low-interest mortgage rate loans.
Experts say don’t panic as not all bubbles are like the one that occurred in 2008. While the housing market is experiencing low inventory, high demand, and a risk-averse lending environment, the extreme spikes in home prices now could result in home prices returning to normal soon. If you have any questions about saving for a down payment or are curious if your retirement assets can be used for a down payment on a new mortgage, your financial professional can provide you with these answers.
The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.
Hyde Group Wealth Management & Insurance Solutions is the culmination of over 20 years in the financial services and insurance industry. We understand there is not a one size fits all strategy. For this reason, we take a comprehensive approach to holistic insurance and financial services planning. We tailor our solutions to the specific and unique needs of each individual, family, or business. Our goal is to put clients first, and take care of them as we would our own family. Contact us today to get started.