American Dream Stays Strong - Counsellors Title Agency

According to the National Association of Realtors® over 90% of homeowners polled believed that owning a home is still part of the American Dream. Even among non-homeowners, approximately 80% of those polled felt the same way about owning a home.

Yet, it appears that the shadow of the crash of 2008 still looms large in their understanding. Increased home prices, taxes, student debt for those recently graduated and a lack of understanding about down payments may be creating barriers to entry.

The survey also found that among non-homeowners, there was less optimism about the possibility of purchasing a home: with those who believed it was a good time to buy declining from 63% in the first quarter to 55% in the fourth quarter of 2016.

The survey showed that among all non-homeowners 87% said that they want to own a home in the future.

It appears that high rents, rising home prices and limited inventory especially in the starter home category has restricted entry to the homeownership market.

Homeownership is also not the only thing being postponed; so is marriage, starting families and saving for retirement.

A separate NAR study from 2016 showed that approximately three-quarters of non-homeowners who are employed and repaying their student loans on time feel their debt is holding them back.

Real Facts About the Down Payment
The NAR’s Profile of Home Buyers and Sellers has shown that the median down payment for first-time buyers has been 6% for three straight years and 14% for repeat buyers in three of the past four years. Yet, when non-homeowners were asked about the amount of a down payment needed to purchase a home, 87% of non-owners felt that a down payment of 10% or more is a prerequisite.

If you have any questions about this information or title insurance, please contact Counsellors Title at 732.914.1400. Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.