Homeownership Going Back to a Long Term Investment

Is there value in owning a home? The recently released 2010 National Association of REALTORS® Profile of Home Buyers and Sellers brings some promising results. Today homeowners are living in their homes longer, and after several years of price declines, are seeing rises in home equity gains.

It was only earlier this decade that so many buyers jumped on the investment bandwagon. They bought and sold within incredibly short time frames, and walked away with profits. But as the booms busted, many sellers found they had bought at the top of the market and as prices corrected, they lost more than just dollars. Foreclosure rates skyrocketed. Historically, however, homeownership is a long term investment, and one that brings many rewards.

Current market and economic conditions have created a shift from the house flipping ways of the boom. The house flipping and quick gains which occurred during the boom period were abnormal, driven by risky, easy-money financing that should never have been allowed in the market.

American are still buying, however. And surveys have found there are particular reasons behind these purchases. These include the desire to own a home, the desire for a larger home, a change in family situation and taking advantage of the home buyer tax credit, a job-related move, and then the current supply of affordable homes.

And once they buy, homeowners are staying put longer. A typical seller has been in their home for 8 years, but the survey reveals first-time buyers are planning to stay for 10 years, and repeat buyers for 15 years.

Even with several years of price declines, the typical seller who purchased a home eight years ago experienced a median equity gain of $33,000, a 24 percent increase, while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent. So, once again buying for the long-term is steering its way back into value.

A Fun Christmas Tree Fact...

There are few traditions more grand than the Christmas tree that adorns Rockefeller Center every year. But did you know that is not the tallest Christmas tree in America?

The tree at Rockefeller Center comes in at just number 9 this year at 74 feet high. The other top 10 are as follows:

10. Houston's City Hall, 70 ft.

8. Portland, OR, Pioneer Square, 75 ft.
7. Boston, MA, Fanueil Hall, 85 ft.
6. Toledo, OH, Toledo Zoo, 85 ft.
5. Kansas City, MO, Crown Center Square, 100 ft.
4. Los Angeles, CA, The Americana at Brand & the Grove at Farmers
Market, 100 ft.
3. Anthem, AZ, The Outlets, 110 ft.
2. Ferndale, CA, Victoria Village, 150 ft.

And topping the list...

Number 1, Coeur d'Alane Resort, IA, Coeur d'Alane Resort, 161 ft.

The number 1 tree is 87 feet taller than the Rockefeller Center Tree! Come on NY, we can't be outdone! Although, perhaps a tree that tall is a bit showy. Keep it classy NYC. *wink*