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Why do people buy homes? It's shifted again from a the primary focus on wealth creation, what we call 'house' considerations, back to more of the more emotional 'home' reasons to buy first, and investment reasons moving to second place.
See below an excerpt from a recent John Burns Consumer Insights, 2012.
- "The expectation of home appreciation continues to be minimal. Of no surprise, consumers are no longer buying a home for near-term investment purposes. Only 24% expect more than 2% home appreciation annually over the next five years.
- Homeownership begins with personal value as "very important." The highest-ranking reasons (i.e., "very important" reasons) that homeownership is important to consumers today include:
- "I don't want to rent the rest of my life."
- "Ownership is what I strive for."
- Second to personal values - but still important - are the financial values. When we combined "very important" with "important," consumers rank "Buying is Affordable" as the #1 reason
- Interestingly, "tax benefits of a mortgage" is at the bottom, below the personal values of homeownership.
Eighty-nine percent think now is a good time to buy a home, with little variation in optimism by region, age or lifestage. The overall average is up 1% from 88% noted in last year's Consumer Insights 2011 survey. " From John Burns Real Estate Consulting
Hat Tip: Dan Williams - San Diego Lending
