By David Mansell, president of the Utah Association of Realtors
12 January 2008 - With the start of 2008, one New Year's resolution for a number of Utahns will be to purchase a home within the coming year. And they're not alone. Across the country, millions of people are expected to become homeowners this year.
The reasons for wanting to purchase a home vary from buyer to buyer, but a recent consumer survey shows that a desire to own a home of their own and to establish a household are the most common reasons homeowners cite for purchasing a home.
Thirty-three percent of all buyers, and a whopping 70 percent of first-time buyers, express these as prime motivators in their quest for a home purchase, according to the National Association of Realtors' "2007 Profile of Home Buyers and Sellers."
A wish for a larger home, a job-related move, a change in family situation, a desire for a home in a better area and an interest in being closer to jobs, relatives, school or transit are also high on the list of reasons for purchasing a home.
Interestingly enough, taking advantage of perfect market conditions has not been mentioned in the 26-year history of the survey.
That's because housing is a long-term investment with both financial and non-financial rewards. But while the financial gains have been significant for most owners, the survey found that it's the social and personal benefits that really influence consumers to buy a home. Social benefits include higher reading and math scores for the children of homeowners and lower crime rates.
The survey also found that the reasons for a home purchase vary quite substantially among different age groups. Three-quarters of home buyers between ages 18 and 24 report purchasing a home because they want to own a home of their own or establish a household. In fact, for all buyers 64 or younger, this is the most frequently cited reason for purchasing a home.
Home buyers 65 years and older reported that their primary reason for purchasing a home was to downsize to a smaller home (19 percent), retire (18 percent) or to be closer to family, friends and relatives (18 percent).
In addition to the motivations found in the above-mentioned survey, here are some more reasons why you can feel good about putting homeownership on the top of your list of New Year's resolutions:
Because market conditions vary by location and because there are many factors to consider in finding the right home and the right financing, it's important for consumers to work with a real estate professional when considering one of the most significant transactions of a lifetime.
By the end of 2007, one of every 16 Americans had purchased a home. Those who hang on to their home for five to 10 years can expect a healthy return on their investment in addition to the priceless benefits of living in a home of their own.