It's June and it is National Home Ownership Month lets look at the ...

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Real Estate Agent with Berkshire Hathaway HomeServices 01238708
https://activerain.com/droplet/5jyn

Since June is Designated as National  Home Ownership Month, let’s look at the state of  the Homeownership  with the statistics, facts and reasons for the same.

www.endrebarath.com

As a background, some of you might not know, since the early ‘70’s there has been an obsession by pundits and statisticians to monitor and track Home Ownership Trends. As a Beverly Hills Realtor, who has been in the local greater Los Angeles Real Estate Market for over 22+ years, I always appreciate and enjoy these types of discussions. Partly because I can get a better understanding of what directions the Home Ownership Trends are heading to. As well as when I hear blatant misinformation, I can educate and correct the misinformation with facts and local statistics.

www.endrebarath.com

 Headlines from the news media often paint a gloomy picture and provide  stories to substantiate the declining home ownership rates in the United States. The “experts” like to focus on Age Groups as one of the reasons for this “decline”. Then when that is refuted, they shift directions to focus on ethnic and cultural reasons.

The Reality is far from it.

According to Statista.com  The homeownership rate in the United States amounted to 64.8 percent in 2018. The homeownership rate is the proportion of occupied households which are occupied by the owners. This reached its peak in 2004 before the 2007-2009 recession hit and decimated the housing market. The rate continued to fall until 2016 but has begun to increase again since then.

There isn’t one single reason why people buy or not buy a home. Let’s look at the numbers. What is 35.2% of the country’s population? (Population 328,231,337 per US Census Feb,2019) Now with that said 64.8 % of the population translates to about 212,693,906 reasons why people  buy homes!!

www.endrebarath.com

I remember my father talking about buying a home and he had two main reasons. Not sure which had a higher priority for him. They both were equally high on his list and they motivated him to buy a home for his family.

 One of them was, if he does not buy now, he will be priced out of the home buying opportunities. Keep in mind, this was in the early 1970’s when Inflation started getting out of control. Prices and Interest rates began to climb. He read an MIT Study and was convince with facts and data. The second reason was, that he was tired of the various landlords who would tell him what he could do and could not in his home. Just to mention a few examples, such as what color for painting,  or putting nails where he wanted to. The on-sight landlords were complaining, that we were always laughing and being too cheerful most of the time. As I was growing up and writing school reports the incessant sound of my typewriter was bothering them. Anyway, you get the idea.

www.endrebarath.com

My take it is,  the primary reasons why people buy or do not buy can be boiled down to the willingness to   Sacrifice and make Commitment coupled with a Lack of Affordability. When my father bought his house, he paid $41.500.00 and had double digit interest rates. Our family had to sacrifice on luxury items and my parents sacrificed on vacations etc. They were stretching to be able to buy their home, but they had a Commitment to the concept of Home Ownership as well as had the responsibility that the Mortgage gets paid first and then everything else follows. So today in the greater Los Angeles area the median home price is around $850,000.00 hence the affordability is equally challenging and the same three  ingredient calls for homeownership.

 In case you are interested this is the voice of experience, I was a homeowner in Waterbury, CT when I came out of the US Army. This was thanks to my father’s influence and help with the down payment. I was not responsible enough to save money, I was having too much fun in Europe…

Then when I moved to Boston, MA and ultimately Los Angeles, CA I transitioned into becoming a Tenant. Why because I had a different attitude, I  was experiencing a different perspective.

 What I call in hindsight, is  the “Champaign Taste & Beer Money” concept. I lived in more desirable parts of Boston as well as in Los Angeles. Keep in mind by the late 1980’s to 1990’s these areas became out of reach for my budget to buy, but not  what my tastes wanted. Hence, I had a few choices to make ‘rent’ or move to less desirable areas to buy.

www.endrebarath.com

 This of course is a normal process all potential buyers face and decide what to do. Ironically choosing the direction becomes a judgement call and some people make good judgements for the long run and make sacrifices for the short term others do not.

I am a believer of Homeownership will bring you peace, tranquility and in a long-term financial stability. This is not just a Beverly Hills Realtor speaking but a home owner who has been on both ends of the spectrum.

 

If you are looking for a knowledgeable, focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals, please reach out to me directly!

If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 (m) or homes@endrebarath.com or visit one of my websites at https://www.endrebarath.com  I contribute a portion of my commission to local animal rescue organizations.

 

 

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Rainmaker
3,174,633
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Ron and Alexandra Seigel  glad you liked the "cat home" so glad you mentioned it:) some people might get the wrong impression if you called it a " house":))))Endre

Jun 03, 2019 09:25 PM #15
Rainmaker
3,174,633
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kathy Streib  I remember my parents worrying what if they will not get a "raise" what if something happens.... all the concerns.. never the less they did the right decision... ironically sold in the bottom of the market for almost three times what they paid for and that was in the 1990's.... Endre

Jun 03, 2019 09:28 PM #16
Rainmaker
1,403,717
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

The path to homeownership definitely differs from person to person. Owning a home definitely means more control and stability.

Thanks for sharing your story!

Jun 04, 2019 05:04 AM #17
Rainmaker
1,153,735
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Endre Barath, Jr.

I have said this before, I have never rented.  I bought my first home in 1972 and never looked back. I don't know what it is like to rent but I have a good idea. 

Jun 04, 2019 05:46 AM #18
Rainmaker
3,763,659
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Endre Barath, Jr. ,

I so enjoyed reading your post because its from a voice of experience. Your dad was a wise man like mine and bought our home and I remember celebrating when they paid it off when we were kids. My brother still has the paper (written in pencil) on the contract they made with their seller! He taught us "never ever pay another man's mortgage" ..just like Warren Buffet says and they were so right!

Jun 04, 2019 06:22 AM #19
Rainmaker
607,341
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Raleigh - Cary Triangle Real Estate 919-602-8489

Great post Endre! You have to start somewhere right? I work in a variety of towns. In the town where I personally live and have for the past 20+ years, people tell me they want to live here. When they see what they can get, they sometimes look in other towns and perhaps eventually move to this town. It's not as special as Beverly Hills or anything. It's just very convenient. Have an amazing week!

Jun 04, 2019 07:13 AM #20
Rainmaker
1,487,544
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Good morning Endre Barath, Jr. , your Dad was a very wise man. I love this post filled with wisdom. When my parents came to this country at different times, purchasing a home was their number one goal which they both accomplished in a short time.

Jun 04, 2019 08:01 AM #21
Rainmaker
3,240,848
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Endre - the topic of home ownership doesn't seem to ever quiet does it?  The thoughts and misconceptions often collide.  It's good to get a pulse on how those outside of the inner-working of this industry think and feel.  

Jun 04, 2019 08:47 AM #22
Ambassador
2,849,819
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Yup, I've sacrificed for home ownership.  My daughter and I lived in our first house (with me as a single mom) without a television or cable.  We survived.  In fact it was a fabulous year.

Jun 04, 2019 09:26 PM #23
Rainmaker
3,174,633
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kat Palmiotti  and if you got a fixed rate mortgage inflation helps you pay more as you make more or just put you in  a comfortable place...Endre

Jun 04, 2019 11:19 PM #24
Rainmaker
3,174,633
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Sheri Sperry - MCNE®  when we were renting Diane was always stressing after about the second month.. who much will they raise the rent next year??mentality, Endre

Jun 04, 2019 11:21 PM #25
Rainmaker
3,174,633
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Dorie Dillard CRS GRI ABR  yes those celebrations were fun... now days you do not see that too often because people use their homes a piggy banks and keep taking money out...Endre

Jun 04, 2019 11:22 PM #26
Rainmaker
3,174,633
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Carla Freund  every place is special if you have the right attitude, Endre

Jun 04, 2019 11:23 PM #27
Rainmaker
3,174,633
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Beth Atalay  yes the American Dream can be achieved with Focus & Sacrifices:) Endre

Jun 04, 2019 11:24 PM #28
Rainmaker
381,141
Matthew Klinowski, PA
Downing-Frye - Naples, FL
Golf Community Real Estate Specialist

Good morning Endre, I appreciate your thoughtful post. Unless you are one of the few individuals who has unlimited funds, any purchase means you are sacrificing something else which will enable you to buy what you want. For some, buying a TV means they sacrifice coffee at Starbucks for a month. The larger the purchase, the greater the sacrifice individuals will make. I too live in an area where affordability is a common topic. If you really want something you will find a way to make it happen. You will make sacrifices. In the end, homeownership comes with multiple rewards such as a sense of accomplishment. At the same time, you are building wealth through a lifelong investment. In my humble opinion, the sacrifices I've made and others have made are worth it when you sit down on your own couch with a glass of wine and know you own your own home. I'll hop off my soapbox now. Have a great day!

Jun 05, 2019 05:25 AM #29
Ambassador
3,914,467
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

HI Endre:

I really enjoyed your post and your perspective. We all know many who have sacrificed in different ways in order to buy, and perhaps have done the same personally.  People buy for a host of reasons and experience a variety of pleasures through their ownership of their own home. 

Jeff

Jun 05, 2019 07:13 AM #30
Rainer
39,638
Kris Collis
Smart Way America Realty - East Stroudsburg, PA
Buy & Sell with Professional Results you Expect

Endre:

A great post from experience and a boots-on-the-ground perspective.  So much value in this article because people relate to real-life experiences that illustrate the statistics.  Those considering home ownership can say, if he can do it, I can do it.  They follow your example and find out, yes they can own a home.

Jun 05, 2019 11:09 AM #31
Ambassador
1,905,774
Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Endre Barath, Jr.  I enjoyed your post as I remembered the timing with the double digits on interest rates very clearly as that was when I purchased my first home. Interest are at an all-time low and it is a perfect time to buy a home. Great post and a well deserved Featured Star 

Jun 05, 2019 05:42 PM #32
Ambassador
1,806,319
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Glad to see the star Endre, I really enoyed reading every word of this post. Purchasing a home can result in sacrifices, especially in the short term. I too was really driven to purchase real estate and bought my first home in my early twenties...it was a condo and I believe it was about 45K.  Each time since, selling a home has netted a gain. 

Jun 08, 2019 08:21 AM #33
Rainmaker
966,685
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Nice post Endre!  Reminds me of my first home in 1984, the frat house my new husband had lived in with 3 other guys.  What a dive!  I painted every inch inside and out.  Removed that yellow shag, pulled down the wallpaper that was filled with termites!   It's important to remember those stories to share with home buyers today so they know we aren't just realtors, as you mention.  Have a great weekend!

Jun 08, 2019 10:12 AM #34
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