Sure, there is a lot of turmoil today in the real estate market. Yes, there have been significant price reductions, and there are a great many homeowners under water in their mortgages. Oh, and it's tougher to get a mortgage. With all of that negative information and media coverage, it's natural that there would be hesitation and doubt when people think about home ownership. First time home buyers are particularly troubled by recent events, and it's only natural. However, there is a lot more to home ownership than just the investment side of the situation.
- Security of place - renting, especially if you're renting a single family home, can be even more temporary a situation than you want. There are a great many renters with stories of wanting to stay in their rental home, only to be uprooted by a sale or foreclosure. Moving is a hassle when you want to do it, but even more of a troublesome chore when you want to stay put.
- Financial security - in this case we're talking about getting a long term mortgage, and knowing that your principal and interest payment will remain the same for the duration of the loan. Rent is only secure through the lease period. Forced moves happen all of the time due to rent increases.
- Lifestyle control - the desire to change your living surroundings, paint that bedroom, upgrade the kitchen, improve appliances, or get that hot tub are all lifestyle decisions that are not available to the tenant in most cases. The ability to make changes in our homes contributes to a better qualify of life and will always be the goal of home owners.
Things will stabilize in the real estate markets, prices will come around, as those are temporary situations. Our desire to control our surroundings will always be part of the picture.