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Friday, May 18, 2012

Why do people own homes?

Home ownership has long been considered an integral part of the American Dream.  Owning your own home, for many, has been a symbol of their status and worth.  Historically, people have looked at home ownership not only for its value as a place to raise a family or call home, but also as a long term investment due to the fact that, prior to 2008, property values had never really dropped.  As the housing market was booming in the early 2000s, many people looked at home ownership primarily as a financial investment.  As property values continued rising at a rapid rate, it was possible for some to make large gains in a short amount of time, prompting several people to invest in real estate like they never had before.

Unfortunately, the unsustainable growth of the housing market reached its limit, and the bottom fell out in many markets.  People who bought homes as a financial investment tool began to face situations in which the mortgage they were paying was higher than the value of the home.  Foreclosures began hitting the market, and people began to lose their homes at an unprecedented rate.  While this has been a determining factor for many people when considering a home purchase, the belief that home ownership is the ultimate goal in life has not changed; however, the views on why home ownership is important has.

MSN Real Estate posted an article that offers statistics on the reasons people say they choose to own homes.  Perhaps not surprisingly, emotional ties and not financial goals are the primary reasons that people cite as reasons to own a home.  View of home ownership shifting is a great article that offers statistics on different aspects of the ways the views of home ownership have changed due recent economic conditions.  Take a look at the article, and let me know your thoughts on these statistics!

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