More Negative Sentiment for Homeownership

from Calculated Risk:



More Negative Sentiment for Homeownership
by CalculatedRisk on 5/25/2011 09:51:00 AM


During the housing busts that followed the California housing bubbles of the late '70s and late '80s, there came a period when sentiment for homeownership changed. The evidence was anecdotal, but it was not uncommon to hear people say owning a home was "dumb".

So one thing I've been looking for is a change in sentiment. Earlier posts on this with anecdotal evidence: Housing: Feeling the Hate, More "Hate" for Housing, and More "Hate" for Homeownership.

A shift in sentiment doesn't mean housing prices have bottomed - it just means the market is getting closer. In previous busts it seemed like negative sentiment lasted for a few years.

Last week Trulia and RealtyTrac released a survey of when Americans thought the housing market would recover. (ht Keith Jurow, Keith is far more bearish than me). .............(more)

The complete piece is at: http://www.calculatedriskblog.com/2011/05/more-negative-sentiment-for.html

unless I lived in an area with quickly rising rents and knew I'd be staying put for at least 10 years.

If my own house weren't paid for, I'd probably be looking for a way to get out from under.

A fixed mortgage is a great hedge against rising rent and paying a house off and owing only property taxes, insurance and repairs is a real bonus when we retire. It's not an investment, however, and the prospect of having to move to follow employment makes it a distinct liability in a tough market like this one.

But that might be the small town mentality. I want the opportunity to do what I want to my home and to know that it won't be sold from under me.

And I am staying put for a while - and couldn't be happier.