5 Reasons Homeownership Trumps Renting
The seemingly endless run of bad housing news is discouraging some potential home buyers from considering a purchase. But the truth is that the advantages of homeownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction.
Here are five of them:
- Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves.
- Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.
- Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.
- Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.
- Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.
Source: The New York Times, Ron Lieber (08/27/2010)
California’s First-time Home Buyer Tax Credit Expired
status at http://takeaction.realtoractioncenter.com/ct/1p2oHy41grrv/.
Martis Camp Home Tour
Come join us for the 2010 Martis Camp Home Tour, Saturday, Aug. 7 from 10 a.m. to 4 p.m. presented by the Tahoe Board of Realtors. Tickets are on sale now for $35 in advance or $40 at the door. Proceeds benefit quality education within the Tahoe Truckee unified school district. AND, “Green Weather” starring our own Garrison Green on guitar and singing will be performing at the benefit!
Spend an afternoon exploring six remarkable one-of-a-kind custom homes in Truckee’s Martis Camp and help raise money to benefit local schools. Discover many of the latest trends and creative ideas in luxury home building as envisioned by several of the region’s premiere architects, builders, designers and landscapers. The Tour begins at Martis Camp: Turn in on Schaffer Mill Road (across from Truckee Airport Road) off of Hwy 267. Follow the Home Tour signs to the designated parking areas and shuttle buses will take guests on the Tour.
Tickets may be purchased at Dickson Realty, Coldwell Banker, Keller Williams, Prudential Realty, Tahoe Mountain Resorts Real Estate in the Village at Northstar and online at www.ExinEd.org.
Tahoe Donner Market Trends – 2nd Quarter 2010
Tahoe Donner Summary (Complete Report)
High Inventory. The number of listings for Tahoe Donner single family homes for sale in the Tahoe Sierra MLS was 155 as of July 10, 2010. This represents a dramatic increase over last quarter at this time, a 96.2% increase in inventory of single family homes. This number is still low compared to previous years at this time of the year. But, as expected, this is the usual increase that we see each year over the number of listings during the winter/spring seasons.
Lower priced homes are continuing to sell the best. The median sales price for single family homes in Tahoe Donner for April 2010 through June 2010 was $543,500. This represents an increase of 8.3%, or $41,500, compared to the prior quarter and a decrease of -5.4% compared to the same period in the prior year. We still have lots of buyers looking for homes in the lower price ranges.
Market Activity increase. The number of single family homes sold in Tahoe Donner, as recorded in the Tahoe Sierra MLS, for April 2010 through June 2010 was 51 homes. This represents an increase of 34.2%, or 13 homes, compared to the prior quarter and an increase of 6.3%, or 3 homes, compared to the same period in the prior year. The market activity increased during the last quarter, which is pretty normal for the 2nd quarter of each year.
Homes are selling at about 96% of their asking price. The average listing price for single family homes in Tahoe Donner for April 2010 through June 2010 was $639,062. This represents an increase of 7.3%, or $43,264, compared to the prior quarter and a decrease of 3.3% compared to the same period in the prior year. We have had a lot of new listings on the market in the last few weeks, and many of the sellers will start their listing prices high and then lower the prices over time, as the summer progresses. Single family homes in Tahoe Donner sold at an average of 95.9% of their last listed price, during April 2010 through June 2010, compared to the same period in the prior year when the homes were selling at an average of 93.7% of their last listed price.
Increase in the average $/sq.ft. of sold homes. Average price per square foot for Tahoe Donner homes sold during the 4th Quarter was $279, an increase of 9.4% (at $255/sq.ft.) compared to last quarter (1st Qtr 2010), and a slight increase of 0.4% (at $278/sq.ft. in 2009) compared to the same period last year. Note: If you are a buyer of property, please remember that the sold price/sq.ft. is generally higher for smaller homes and lower for larger homes.
Home Buyer Tax Credit Extended
Congress has passed a bill extending the Home Buyer Tax Credit closing deadline to September 30, 2010. However, the extension applies only to transactions that had ratified contracts in place as of April 30, 2010, and have not yet closed. There will be no gap between June 30 and the date the President signs the bill into law. For additional information on the tax credit deadline, visit Realtor.org/Government_Affairs.
