Residential real estate had a great year in 2015. Demand was strong and inventory, although dropping, was still enough to sustain the demand. It is expected that 2016 will also be a good year. It maybe a little more favorable for sellers since the affordability index continues to drop and inventory has fallen to 3.4 months.
We have reported many times that the American Dream of homeownership is alive and well. The personal reasons to own differ for each buyer, with many basic similarities.
Eric Belsky, the Managing Director of the Joint Center of Housing Studies at Harvard University expanded on the top 5 financial benefits of homeownership in his paper -The Dream Lives On: the Future of Homeownership in America.
Here are the five reasons, each followed by an excerpt from the study:
1.) Housing is typically the one leveraged investment available.
“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value…