When it comes to deciding whether to rent or own a home, it seems that many Americans have their hearts set on being homeowners. The National Association of Realtors (NAR) recently released its annual Profile of Home Buyers and Sellers report, which found that 30 percent of people looking to buy a home were doing so because they wanted to own, not rent. Over the course of the past year, the NAR surveyed home buyers and home sellers in an attempt to track real estate trends throughout the country.
The Cost of Buying a Home Is Going Up
While the dream is to own a home, the reality is that it is getting more expensive to do so. Home prices are rising in many geographical areas, including South Jersey. According to the NAR report, the median price of a home sold in the U.S. in 2015 was approximately $220K, up $10,000 over the median price in 2014.
These rising prices mean that dual-income households are now more likely buyers than single-income and single-member households. The NAR report found that more than two-thirds of all U.S. homebuyers in 2015 were married couples.
Conversely, the number of single people making their first ever home purchase declined to just 32 percent of the market, a near-record-low figure. For individuals looking to purchase, saving for a larger down payment and bringing in a roommate are ways to defray costs.
Owning vs. Renting
The NAR survey results also showed that many Americans are still intent on being homeowners, as opposed to renters – even as the cost of purchasing a home gets higher and higher. According to the NAR report, 30 percent of prospective home buyers indicated that their main reason for purchasing a house was their desire to own, rather than rent. Perhaps because of this strong desire to own a home, most home buyers in 2015 said that they felt satisfied with their homebuying experience. That suggests that no matter how high real estate costs get, we should expect homes put on the market to continue to generate a lot of interest in 2016.
For more information about what the National Association of Realtors data revealed about home buyers and sellers in 2015, read the Tri-Town News article, “The Makeup of Buyers and Sellers.”
If you are buying or selling property anywhere in New Jersey, including Cherry Hill, Moorestown or Maple Shade, it is in your best interests to speak with a qualified real estate attorney. The Posternock Apell, PC team is dedicated to protecting the rights and financial interests of clients. Contact us today to schedule a free phone consultation.