There’s always a lot of chatter about the real estate industry; as it influences such a large part of our economy that’s really no surprise. Currently there are many saying the housing recovery movement is in full swing; likewise many warn with words of caution that we’re headed for another bubble burst. Yet others remain inclimate by saying a housing slow down is imminent and not to get too all fired up either way. While there are a number of factors yet to weigh in, the year is after all still barely started, there are some myths making their rounds that simply must be dispelled.
Real Estate is Only for the long term.
Realistically house prices today are still roughly where they’ve been since the 1950’s, aside from a few booms here and there, according to the Case-Shiller Home Price Index. If that is true – and on average home values only appreciate on average 3% per year – then that’s pretty slow growth; you won’t make as much money over the long term. For those looking to make quick gains buying, improving, and reselling are fast turn around markets. So in truth real estate for your average long term buyer is a sound investment because of it’s stability, but there is also room there for the fast and furious flipper as well.
The Suburbs are out.
Many census statistics from last year would have us thinking that for the first time in decades that cities were the place to be. Population will naturally be more dense in urban cores; this is what the higher growth rates can be attributed to. More recent and accurate studies have since been done, taking that factor into consideration, to find that growth in the suburban communities to be nearly 1% higher than in urban cores. What’s more the suburbs are changing, becoming little mini-cores of commerce and culture all their own, making them very attractive for those who prefer a little less hustle and bustle.
It’s a Renters Market.
No way no how. A recent survey found that 96% of American consumers consider home ownership important. 77% of people between the ages of 25 and 44 are also saying that owning a home is “very important” to them too. Trulia data shows 93% of Millennials who currently rent plant to buy a home in the near future – some as soon as in the next two years.
Buying is Always Better.
It’s true that buying a home has become more affordable than renting in most major cities, under certain circumstances. And if you’re looking to lay down roots in the community by staying put for more than five years, then buying is without a doubt the way you want to go. But fact is, if you’re not sure about the future, if it may likely involve big plans to move it may not be the best time for you to buy. It all depends on your personal plans and what your situation may be – the best place to start is to talk to a qualified REALTOR®.
Hopefully this information has helped you understand a bit more about the real estate market, and has dispelled some of the myths going around the industry today. Want to stay up on all the latest Boise real estate news and local info? Visit our Facebook Fan Page!