So you want to buy your first home? That is awesome!
Owning a home used to be a part of the American Dream. For many, that dream is changing. Home ownership still has merit as it gives a sense of pride, stability and control—say goodbye to your landlord.
This article is meant to bring your attention to some “talk” you may encounter on your homeownership journey.
The national homeownership rate in 2016 fell to 63.4%, its lowest in fifty years according to data from CoreLogic. There are several speculations as to why this is the case:
1. Institutional racism – some believe, and there is data to support it, that American whites are more likely to receive a mortgage than African-Americans and Hispanics, according to distinct analysis by Wall Street Journal (2016 – Banks’ Embrace of Jumbo Mortgages Means Fewer Loans for Blacks, Hispanics) and a study by the National Community Reinvestment Coalition.
2. Some say the reason for the drop in homeownership is due the market still recovering from the real estate bubble debacle of the late 2000’s.
3. It takes a long time to accumulate enough for the down payment – According to a recent report from Apartment List states that for many millennials, it will take nearly a decade to accumulate enough savings for the down payment.
4. Generational renters – I have heard another piece of speculation that says many (in particular millennials) would rather rent because their parents rented.
It really doesn’t matter about the speculation out there about home ownership. If you want to buy your first home, then by all means go for it. This article addresses the possible obstacles and speculation. My next article will show you how to get your down payment together.