The phrase "The American Dream of Homeownership" is what those of us in the real estate industry typically think of. Yet according to Home Ownership rankings on Wikopedia, there are 40 countries that have a higher percentage of the population that are homeowners than those in America, reporting a 64% homeownership rate. Romania is #1 with 96.4% homeowners being reported. I was surprised to see Cuba at 90%, Russia at 84%, and even Mexico is higher than the US with 80%.
|If the American Dream is Homeownership, why do we have such low national standings? For one, the term "ownership" varies in definition between countries. Are you actually a homeowner when when you sign the mortgage loan agreement, or when it's paid in full? And what type of ownership? In Russia, you can share with 6 other families, and thus own 1/7th of the property. And is the property freehold, or leasehold where the government still controls the land? Too many variables to do an actual "apples to apples" comparison.|
There's no doubt the cost of financing homeownerhsip in the US has become more affordable in the last decade. According to the Census Report of Median & Average Home Sales, the first quarter of 2007 showed median home sales at around $242,500. First quarter of 2017 at $311,125. HOWEVER, monthly average interest rates, according to the Freddie Mac website, dropped TWO percent in that same time frame. This means financing a higher priced home today, at the current lower interest rate would run approximately $200 per month LESS today than a decade ago.
(Numbers given are for comparison only and not to be considered an offer for financing.)
Wouldn't it seem our American Dream of Homeownership is more affordable today than it was a decade ago?
Opinions expressed here are the sole responsibility of the author, and do not necessarily reflect the view of Fairway Independent Mortgage.
Ruth Vogt, Sales Manager
#LMB100023827, NMLSR# 257576
Equal Housing Opportunity.
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