Yes we have taken a hit in home equity over the past couple of years, to say the least considering the condition of our economics and the climate of real estate investments today. Many are wondering if now is a good time to buy, where others are considering on selling and cutting their loses. According to a recent analysis of Federal Reserve data by the National Association of Reltors shows the answer is yes, now is a good time to own a home.
In comparison with renters, home owners have much greater household wealth, says NAR's April commentary on the Fed's Survey of Consumer Finances. Owners' wealth exceeds that of renters by a factor of 50-to-1: a median of $205,200 versus a median of $4,200. The main wealth difference between the two is home equity, of course. And even for households who've owned their home only since 2003, home equity gains are the rule rather than the exception- in some cases, equity gains heve been significant.
In all 150 markets tracked by NAR, including hard-hit markets,households who've owned their home for 10, 15, and 20 years have uniformly enjoyed strong equity gains despite the recent downturn.
Data can clearly show that homewonership remains the biggest store of wealth for the typical household, so YES HOMEOWNERSHIP STIL PAYS. (excerpts from article by Robert Freedman, Realtor magazine 6/09)
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Yes, homeownership does still pay.
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