Real Estate News

Kelly Sweeney, CEO Coldwell Banker Weir Manuel

Reason: “It makes more sense to rent than to own.”

Rather than speculate on this issue, why not look at some hard data. Let’s ask renters, not homeowners, what they think? Fannie Mae’s National Housing Survey 2010 reported:

* 58% of current renters believe now is a good time to buy a house
* 75% of current renters believe owning a home makes more sense and
* 67% plan to buy a home at some point in the future

When they asked current renters for the major reason to buy a house, these were their answers (they could pick multiple answers):

* 78% said it was a good place to raise children
* 75% said because they would feel safe
* 70% said because you have control of your own space
* 66% said owning a home would be a good way to build wealth
* 54% said paying rent is not a good investment

If it makes more sense to rent than own, why do more than half of renters think now is a good time to buy, three out of four believe owning a home makes more sense and two out of three plan to buy a home in the future?

To believe that renting makes more sense is to believe that the majority enjoy living in a less safe environment, which wouldn’t be as good a place to raise children; a place where they have less control of their space and a place that won’t enable them to build wealth.
It just doesn’t make sense!

With the scheduled closing deadline for the home buyer tax credits, existing-home sales slowed in June but remained at relatively elevated levels, according to the National Association of Realtors®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 5.1 percent to a seasonally adjusted annual rate of 5.37 million units in June from 5.66 million in May, but are 9.8 percent higher than the 4.89 million-unit pace in June 2009.

Lawrence Yun, NAR chief economist, said the market shows uncharacteristic yet understandable swings as buyers responded to the tax credits. “June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months,” he said.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said softer home sales expected this summer don’t tell the whole story. “Despite these market swings, total annual home sales are rising above 2009 and we’re looking for overall gains again this year as well as in 2011,” she said. “Conditions have become more balanced in much of the country, which is good for both buyers and sellers. However, consumers find it even more challenging to navigate the transaction process, especially for distressed properties, which only underscores the value Realtors® bring to buyers and sellers in this market.”

Existing-home sales in the Midwest dropped 7.5 percent in June to a pace of 1.23 million but are 11.8 percent higher than a year ago.