Maryland Real Estate Blog

PRESS RELEASE

February 28, 2008

They Buy to Own

A desire to own a home of their own and to establish a household are the reasons homeowners most often cite for purchasing a home, according to a recent consumer survey.

Thirty-three percent of all buyers, and a whopping 70 percent of first-time buyers, express these as prime motivators in their quest for a home purchase, according to the National Association of Realtors^® 2007 Profile of Home Buyers and Sellers.

A wish for a larger home, a job-related move, a change in family situation, a desire for a home in a better area and an interest in being closer to jobs, relatives, school or transit are also high on the list of reasons for purchasing a home.

Interestingly enough, taking advantage of perfect market conditions was not mentioned – not this year, not last year – not in NAR’s 26-year history of surveying buyers and sellers.

“The bottom line is that housing is a good long-term investment with both financial and non-financial rewards. While the financial gains have been significant for most owners, it’s the social and personal benefits that really influence consumers to buy a home,” explained Julie Duley, President of the Harford County Association of REALTORS®.

“Most people buy homes to become homeowners, to live in those homes, and to be part of the communities in which those homes are located. People don’t just buy a house or a condo – they buy a home,” Duley said.

Reasons for a home purchase vary quite substantially among different age groups. Three-quarters of home buyers between ages 18 and 24 report purchasing a home because they want to own a home of their own or establish a household. In fact, for all buyers 64 or younger, this is the most frequently cited primary reason for purchasing a home.

Home buyers 65 years and older reported that their primary reason for purchasing a home was to downsize to a smaller home (19 percent), retire (18 percent) or to be closer to family, friends, and relatives (18 percent).

Duley noted that for the most part speculators have left the housing market, leaving serious buyers with a wide variety of inventory to choose from.

Because market conditions vary by location and because there are many factors to consider in finding the right home and the right financing, it’s important for consumers to work with a real estate professional as they consider one of the most significant transactions of a lifetime, Duley added.

“By the end of 2007, one of every 16 Americans have purchased a home,” Duley said. “Those who hang on to their home for five to 10 years can expect a healthy return on their investment in addition to the priceless benefits of living in a home of their own,”.