Does Homeownership Make Sense Financially?

Everyone knows the social advantages of home ownership. However, some question the financial benefits of owning a home. Three recent studies shed some light on the issue.

RealtyTrac recently released a report comparing home price appreciation to wage growth over the last two years. The study revealed that home price appreciation has outpaced wage growth in 76% of U.S. housing markets during that time period. By how much? Here is a graph showing their findings:

And we all know the importance of home appreciation in determining the net wealth of most American families. Merrill Lynch just issued a report covering the issue. Their findings are shown here:

It obviously makes financial sense to be a homeowner.

But, does it make sense to buy now?

The survey company Pulsenomics just issued their findings on the cost of owning versus the cost of renting. They compared historical averages to the cost you can expect to pay today.

The cost of buying is far below historical averages. Renting is another story.

Later today, we will be hosting a webinar entitled 4 Secrets to Getting Buyers & Sellers Off the Fence which will go into more depth about the opportunity available to buyers, along with ways to help potential sellers realize that now is the time to list their home.

You can reserve your seat here.

Selling Your House in 2015? Don’t Miss this Opportunity

Every seller wants to get the best price for their house. We learned in high school that the best price for any item will be determined by the demand for that item relative to the supply of that item.

We have reported that the inventory of houses for sale is well below normal numbers.

There is historical evidence that the demand for housing is about to increase dramatically. Each year, more homes sell in May, June, July and August than any other four months of the year. Here is a graph of home sales last year by month:

Bottom Line

You want to make sure your house is available for sale during peak selling season. If you are thinking of selling this year, contact a local real estate professional today.

15 ways to stage your home.