Why 'House Hunters' Gives a False Idea of Today's Buyers

I can't begin to count how many times I've come home from work to find my wife watching House Hunters. There's nothing quite like coming home from a long day's work to watch, well, work. Not to mention the fact that it's a reality TV show that's not even close to reality. Sadly, House Hunters is completely fake. That's right – the buyers you see are actually "touring" a house they've already bought, then going on fake tours of two other houses. So what does a home buyer in 2016 really look like? Well, unlike on House Hunters where the buyers look at three homes, the National Association of Realtors says that the average time a person spends looking for a home is eight to 11 weeks.   

There's just something about pulling up to your own home every day.

Another interesting fact is that at least 80% of buyers under the age of 60 buy a single-family home. The number one reason cited for buying a home was the desire to own a home of their own. I can attest to that – there's just something about pulling up to my home every single day. It really is a true sense of pride. When it comes to actually buying the home, overall, 88% of buyers finance their home purchase, and nearly 97% of buyers from Generation Y used financing. Generation Y buyers are also the most active buyers, purchasing 32% of all homes available on the market in 2015. I hope that gives you a better picture of what a buyer is really like in today's market rather than some phony reality TV show. If you have any more questions about today's buyers or you're looking to buy or sell a home in the Boston area, give me a call or send me an email. I'd love to speak with you.

Building Wealth Through Homeownership

I recently had someone ask me why homeowners are worth 36 times more than renters. Today I wanted to illustrate why homeownership is one of the best ways to grow wealth.

The average sale price for a single-family home in Massachusetts is $450,000. The latest Home Price Expectations Survey by Pulse Economics found that over the next five years, it is expected that homes will appreciate by 3.5% per year for a cumulative appreciation rate of 18%.

In the next five years, homes are expected to appreciate by 18%.

So in terms of that $450,000 house, it's expected that in five years, it will be worth $516,000 - a $66,000 gain! The best part is that the owners of this home will have done nothing different than the renters next door. Added improvements like kitchens and bathrooms will only bolster the value gain. Not to mention that a homeowner has the stability of a locked-in mortgage payment and the added benefits of writing off the interest.

When you buy a home, you're doing more than just buying an investment. A home increases your financial standing and also provides many other intangible benefits. Remember that real estate is local and that market conditions vary from town to town.

If you have any questions about home value, appreciation, or just about real estate in general, feel free to give me a call or send me an email. I'd love to help you out.

Should You Rent or Buy Your Home?

I wanted to give you a little breakdown of the home buying process and why now is such a great time to buy in Boston.

I read the other day that the average net worth of a homeowner is 36 times greater than the average net worth of a renter. It's also expected that this gap will expand to 45 times greater in 2016.

There are many reasons why, but simply put, homeownership is a form of forced savings. Every time you make a mortgage payment, remember, you're just contributing to your net worth. If you're currently renting, it might be painful to think that you're contributing to your landlord's net worth.

Homeowners have a net worth 36x higher than renters.

Rental rates have skyrocketed this year, up 3.8% year over year, marking the largest increase since 2007. Buying a home offers you stability. With a fixed rate, you can take comfort in knowing that your mortgage payment isn't going to increase. With interest rates near historical lows, now is the time to buy a house if you haven't already done so.

Thinking you don't have enough for a down payment, or an insufficient credit score? In 2015, the average credit score for an FHA loan was 686. The average home buyer put 10% down, with the average first-time buyer putting just 6% down. Thinking you need 20% down just isn't true anymore.

If you're thinking about buying or selling a home in the Boston Metro Market, I'd love to speak with you about how we can accomplish your goals. Give me a call or send me an email and let's talk soon!