4 Reasons to Buy a Home This Year
The real estate market is under the microscope now more than ever. The notion of home ownership was shattered for millions of Americans during the financial crisis, when an estimated $19.2 trillion in household wealth evaporated. Approximately 2.6 million homes were foreclosed on between 2009 and 2012, and the prospects of home ownership — still one of the top priorities for many Americans — became clouded with pessimism.
The recovery has been slow, but walking into the second half of 2013, the housing market has emerged as a pillar of the U.S. economic recovery. Inventory of unsold homes is declining and new home sales are stabilizing. Housing prices in many parts of the country have fully rebounded, and low mortgage rates continue to spur buying activity. Still, home ownership is at its lowest level since 1995, according to the U.S. Department of Commerce, striking the recent low in the second quarter of 2013. The home ownership rate in the U.S. fell to 65 percent in the second quarter compared to the pre-crisis high of 69.1 percent.
But President Obama is on a mission to change that. Speaking in Phoenix at the beginning of August, the president said the issue of home ownership is “the most tangible cornerstone at the heart of middle-class life.”
Here are a few reasons why, five years after the peak of the crisis, home ownership is looking attractive.