According to the latest statistics, “65.5% of the individuals in the US have their own home.” This is the percentage of owner-occupied households. During the great recession, the house purchase rate decreased. Until 2016, the rate continued to decline. It gradually begins to rise after the latter half of 2017.
Americans, who view homeownership as the symbol of prestige and glory, remained stable aftermath of the great recession. According to the American dream, every individual has the right to achieve accolades as per his calibre and skills. It did not prioritize any class. Instead of providing equal opportunities to those who share the potential to perform the best shall win the lifestyle one wishes to live.
However, the American dream fell into pieces post-Great Recession. The US experienced the worst economic phase with ever-increasing mortgage interest rates. Individuals resorted to no credit check loans with guaranteed approval to manage urgencies. The phase was indeed challenging for US citizens.
Homeownership trends vary from generation to generation. The eagerness to own a home has slashed among people aged 65 and above. In contrast, millennials are increasingly drawing towards the very idea. According to Nerd Wallet, “82% of millennials believe in the idea of owning a home”.
The U.S. Census Bureau and the US Department of Housing and Urban Development jointly conducted a survey. They announced new residential statistics for May 2022.
According to the survey, “sales of new single-family homes in May 2022 were at a seasonally adjusted rate of 696,000. The sales count is 10% above what it was in April 2022. Around 444000 houses were sold by the May end.
As per Forbes, “the house prices may increase by 10.8% in 2022.” However, the change indicates the market’s stability by 2023.
Will the rising price provoke an individual’s interest in real estate?
With the increase in house prices and homes becoming significantly unaffordable, individuals are stuck on renting. The lack of new properties in the US has increased the mortgage rates. The country is witnessing 21% fewer mortgage applications than in 2021.
Apart from that, the rising interest rates make it almost impossible for US individuals to achieve financial freedom. It has made owning a home a far-fetched dream for many. Individuals manage minimal rental payments by taking emergency cash for the unemployed. The repayments and loan fees are a constant cause of concern.
Focus Loans help individuals with unique lendings. No two home seekers share exact requirements. Thus, provide loans that meet your expectations at a fair level.
Would you prefer to rent or own a home instead?
However, along with house purchase rates, renting rates too have increased by 4%. Compared to owning a home, renting is more costly. It leaves one with nothing but liabilities. Thus, it is no surprise that individuals wish to save for a one-time investment. Here are the key drivers that provoke one to purchase a home:
Homebuyers build equity as the property price rise over time. Equity grants homeowners major control over their finances and helps secure their retirement. The homeowners can leverage this equity to borrow money for home improvement. In opposition, renters can never claim equity in the rented home. It is the landlord’s property. They benefit the least from renting the apartment.
Rising home prices increase the value of the existing homes. The homeowner benefits the most from rising prices. House prices were up by 20% in March. It proved a major wealth gain for homeowners. However, the news was not good for the house buyers.
Individuals resort to a much more comfortable aspect of living by owning a house. Some individuals find dealing with landlords complicated. Landlords are generally not flexible. And sometimes, financial situations do not favor individuals.
This is why individuals often depend on an emergency rent loan on bad credit to pay off rent in distress. The rented individuals have to deal with complex restrictions. In case of mismanagement, the argument catches fire. Owning a home rescue one from dealing with such issues and ensures peace of mind. Individuals share the freedom and save finances to create the dream lifestyle.
Renters often encounter difficulty in securing the security deposit back while leaving. It mostly turns out in the landlord’s favor. It is the reason individuals prefer saving for owning a home. People explore different no-credit-check loans on guaranteed approval from direct lenders.
Once approved, they can relax and lead a life while paying the installments. Americans prioritize present living. They believe in living life to the lease. Direct lenders provide flexible loan arrangements for individuals to qualify. Eligibility terms and criteria are easy to qualify for the loan.
As mentioned early in the blog, the American dream is something individuals live for. Renting a home does not help them achieve their goal of financial independence and dignity.
Thus, a home purchase allows them an opportunity to take the first step toward rationalizing their dream. Who does not wish to live a lifestyle one enters a country with hope?
It is the reason the popularity of the real estate industry in the US is notch high every year.
Despite the majority of Americans aspiring to purchase a home, they encounter obstacles in their path. They face several hurdles like saving for a down payment, high mortgage rates, high-interest loan debts, and a series of emergency rent loans on bad credit -marking the credit history red.
As per Bankrate statistics on 30th June 30, 2022, “the average mortgage rate for a 30-year mortgage is 5.91%.” If you are seeking to refinance your mortgage.
It is the best time to do so as the mortgage refinance rates stand historically 13 points low in the past 7 days. It can be a profitable move for home seekers.
It currently stands at 5.81%. It is only for the 30-year mortgage. The 15-year mortgage refinances rate concludes at 5.13%. It is amazingly 16 points down from the previous rate.
Most mortgage rates may rise in 2022. The 6% increase in rates in the 2022 June justifies the statement.
Here are some popular obstacles to securing a home amid the present conditions:
Not everyone sells abruptly. Instead, wait for the mortgage rates to go up and grab the best price for their property.
With people retaining and waiting for the apt moment to sell, there is an increase in the property prices.
Landing into the real estate market for first-timers is indeed tricky. They have to grapple their way through cash buyers, lack a good percentage of affordable homes, high deposits, and properties exiting the marketplace.
With old homeowners halting the house sale, making way to the homeowners’ club is impossible. It is the trickiest for first-time buyers.
Builders are skeptical about constructing homes. The reason for this is the steep shortage of building materials. Low availability makes the materials costly. Input costs for property developers are notch high.
Costly material increases the price of the property. High property price dissuades the customer’s interest in buying one. Most properties will go unsold, with property constructors and real estate sellers facing a huge loss.
As per these conditions, the current real estate market is heading towards a housing crash. The crash will bloom in the real estate market gradually. However, as per experts, the crash is unlikely.
As you can grasp from above, home prices may increase for a year or so. Interest rates have gone up too.
So, should you buy a property right now?
In short, yes. It is a smarter move than any other time to invest in property right now. The popular reasons are:
Whatever you do, evaluate the conditions before purchasing a property. It is not always necessary that an investment may prove profitable. It depends on a million factors. Slow equity growth and the property value increase may affect your aspirations. Research your local market, finances, and risks, and make a move.