The Value in Owning a Home

Is there really value in homeownership? The National Association of Realtors recently released its 2010 Profile of Home Buyers and Sellers, showing some promising information about the Real Estate market, particularly the home buying and selling area. Homeowners of today are able to live in their homes for a longer time, and can see increases in equity gains.

It was just earlier in this decade that a lot of home buyers jumped on the opportunity to buy new homes. They purchased homes, and then sold them again, usually at short time intervals and gaining large amounts of profits. However, as the boom subsided and the dust settled, a lot of sellers found that their investment activities happened at the top of the Real Estate market. As the prices went down, their investments declined in value as well, resulting to great losses. However, as history proves it, owning a home is an investment that you have for a long time, and this can bring in the rewards.

According the Vicki Cox Golder, 2010 NAR President, sellers who bought during the boom of the Real Estate market and sold at short time intervals were hurt by the drastic decline in prices. However, the larger number of homeowners who stayed for a significant amount of time in their homes was able to build the value of their properties. This would then give them enough equity for a trade-up purchase. She further adds that in spite of the unpredictability of the housing market, long-term homeowners can see healthy gains in their properties and the values.

Golder also states that the pattern of purchasing homes with a long-term perspective has strengthened in the last few years. This is because homeownership encourages a more stable investment return, and the investment gets better as time passes.

The economic situation these days have caused a shift from one of the popular moves during the time of the market boom, which is house flipping. According to Golder, only experienced and careful investors are able to gain much from house remodeling before they sell the property, because they conduct careful investigation of the properties that they get.