Apparently the real estate recovery has finally come to fruition according to many professionals in the industry. Strong listing and sales numbers confirm this, along with the increase demand for investment property, especially multifamily and commercial rental space. Some prices are hitting 2007 levels in some ares which is a strong indicator of economic rebound. According to Bill Mack, AREA Property founder and chairman, “I think the recovery has started, we bounced off the bottom. But the recovery has been tepid, it’s been spotty and it’s been uneven.”
The first round of deliveries of the new streetcar project have just begun and we have the inside info on it. Aren’t these new cars beautiful?
This historic home was built for Thomas Jefferson’s great great grandson Hollins Randolph in 1924. It was moved fourteen years ago by 40 feet so a condo development could be built, but now, the developer wants to tear it down.
We began renovations again on our Brookhaven home the 2nd week of February. So far, the workmanship has been excellent and the only delays to report are due to the persistent on again, off again rain showers typical this time of the year. We started by crating a “craftsman style” porch on the front of our 1940s bungalow.
You can see on the far right of the picture that we began closing in our carport, enabling us to use it as a den, and free up space in our formal living room for entertaining. Additionally, our laundry room is connected to the carport on the outside of the home, therefore doing laundry is a tedious task, and not the most comfortable in extreme heat or cold. These small homes do not afford you the luxury of space, so taking advantage of what you have is key with any small home. We decided to sacrifice our carport for the additional 300+ square feet and indoor laundry, and I truly believe we are making the best decision.
We have reported that almost six million adults between the ages of 25 to 34 are currently living with their parents. That number reflects an almost 50% increase since 2003. These young adults are now being advised to jump into homeownership.
Who are the people selling them on the American Dream? Their parents! It seems that parents of some adult children are strongly suggesting that their children take advantage of the low cost of homeownership available today. Some moms and dads are helping financially and are even co-signing for the mortgage. Middle age parents who have owned a home understand its true value. A home has always been a good long term financial investment. However, homeownership also has many other benefits.
In Fannie Mae’s most recent National Housing Survey, they asked the question directly: Is this a major reason to buy a home?
The study broke up the answers into financial and non-financial reasons. The top four reasons and six of thetop ten reasons were NON-FINANCIAL. The top four are below:
- It means having a good place to raise children and provide a good education.
- You have a physical structure where you and your family feel safe.
- It allows you to have more space for your family.
- It gives you control over what you do with your living space (renovations & updates).
Should this surprise us? Aren’t these the same reasons our parents bought their home? Aren’t these the same reasons we purchased our home? These are the same reasons parents have suggested their children buy a home. They want the same things for their grandchildren that they believed to be important for their children.
And today, the cost of homeownership is at all time lows:
“The numbers on housing have an important message for American families today, and particularly younger families setting out on life’s great adventure: Five years ago, at the peak of the home-buying euphoria, it was emphatically a time to rent. Today, when home ownership is depreciated more than ever before, the numbers tell us it is a time to buy.”
“[S]omeone who plans on staying put for seven years would come out ahead by about $9,000 if they bought a median-priced home rather than being a tenant in a median-priced rental.”
“Homes today are more affordable for average families than they have been since 1971. Median-income families today have nearly double the funds needed to purchase the average home.”
Now that the economy is beginning to show signs of stabilizing, people are getting back to the core values that families have always embraced. Homeownership is definitely high on that list. And today, from a financial standpoint, it may be the opportunity of a lifetime.