7 Reasons to Own A Home
1. Tax benefits.
The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, and some of the costs involved in buying a home.
Historically, real estate has had a long-term, stable growth in value. In fact, median single-family existing-home sale prices have increased on average 5.2 percent each year from 1972 through 2014, according to the National Association of REALTORS®. The recent housing crisis has caused some to question the long-term value of real estate, but even in the most recent 10 years, which included quite a few very bad years for housing, values are still up 7.0 percent on a cumulative basis. In addition, the number of U.S. households is expected to rise 10 to15 percent over the next decade, creating continued high demand for housing.
Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
Unlike rent, your fixed-rate mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will likely increase.
The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.
Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity. Courtesy of the Real Estate Magazine
While home prices have risen, home sales are relatively flat. Whatcom County home sales increased 2.3% in 2019, while Bellingham posted a 4% decline. Several communities posted strong increases: Nooksack Valley home sales jumped 23.6%, Blaine/Birch Bay was up 21.4% year-over-year, Ferndale rose 13.6% and Sudden Valley increased by 9.5%.
It became clear last spring that Whatcom County would continue to be very much a seller’s market, leaving buyers with little choice than to come in with offers above the listing price. For example, in April the median sold price was $20,000 higher than the median list price.
“The second quarter is always the busiest, and it was really peaking (in 2019),” Muljat said. He noted that the second half of the year was slower in terms of sales and lower prices.
Muljat expects 2020 to be a year of more moderate levels of appreciation, sticking around that 4% range. For buyers, they will still need to be hitting around the list price on most houses for sale, particularly in the spring. Inventory is expected to remain tight this spring, but the next 60 days will reveal whether that’s the case, he said.
Courtesy of the Bellingham Herald, January 2020