HOMEOWNERSHIP FOR THE LONG TERM
Many homebuyers today are taking a long-term view of homeownership. According to a recent survey by the NATIONAL ASSOCIATION OF REALTORS® (NAR), first-time buyers plan to stay in their home for 10 years while repeat buyers plan to hold their property for 15 years.
Even after several years of price declines, homeowners are still experiencing equity gains from their home purchase. For example, a typical seller who purchased a home eight years ago saw a median equity gain of 24 percent in 2010, while sellers who purchased their home 11 to 15 years ago experienced a median equity gain of 40 percent.
Even with the turmoil in the economy, 85 percent of homeowners see their property as a good investment and nearly half think it is a better investment than stocks. The single biggest reason most people buy a home is the simple desire to own their own home, which was cited by 31 percent of survey respondents and 53 percent of first-time buyers. Other reasons given for purchasing a home: to move to a larger space; a change in family situation; to take advantage of the homebuyer tax credit (now expired); a job-related move and housing; affordability.