Leave a Message

Thank you for your message. We will be in touch with you shortly.

National Homeownership Month

June has been proclaimed National Homeownership Month in the United States. It is a time to celebrate and promote the benefits of homeownership and encourage individuals to consider purchasing their first homes. And we are reminded of June 1986 when we bought our first home. We had been renting on the Upper East Side in NYC and our dream was to buy a place, but we just couldn’t imagine how to do it. A good friend of ours who was a banker and pretty smart financial guy convinced us we could do it. He said, “you just gotta get in the game.” (More about that later.) On New Year’s Eve 1985 we thumbed through the real estate section of the New York Times. Can you imagine? It was printed on actual paper! There was no internet, no Zillow, no way to search online. We found a true fixer-upper in a vintage 1929 building on the corner of Bedford and Barrow in the West Village.  It was a 5th floor walk-up 2-bed 1-bath condo that was all of 550 sq ft and badly in need of renovation. Interest rates were 13% and somehow, we got a mortgage and a construction loan. We spent less than $200K and wish we had hung on to it. Units in that building are now selling for just under $2 million! But we did ok. When we did sell it after a few years to move to Chicago, we were able to buy a great little house on a pretty street in Lincoln Park. And THAT’s how we got in the game!

For first-time homebuyers, National Homeownership Month can serve as a reminder of the opportunities and advantages of entering the housing market. Despite the current interest rates, which are now around 7%, there are several reasons why it can still be beneficial for first-time buyers to explore homeownership:

  1. Building equity: Buying a home allows individuals to build equity over time. As mortgage payments are made, the loan balance decreases, and homeowners gain ownership stake in their property. Over the long term, this can be an effective way to build wealth and establish a solid financial foundation.
  2. Stability and control: Owning a home provides stability and a sense of control over one's living environment. Homeowners have the freedom to personalize and modify their homes to suit their needs and preferences. Additionally, they are not subject to the uncertainties and potential rent increases that come with renting.
  3. Tax benefits: Homeownership often comes with tax advantages. Mortgage interest and property tax payments may be deductible, which can reduce the overall tax burden for homeowners. This can be particularly valuable for individuals who are looking for ways to optimize their tax situation.
  4. Potential appreciation: Historically, real estate has shown a tendency to appreciate in value over time. While it is important to note that there are no guarantees, homeownership can provide the opportunity to benefit from potential property value appreciation. This can be advantageous when it comes to building long-term wealth.
  5. Pride of ownership: Owning a home can instill a sense of pride and accomplishment. It allows individuals to establish roots in a community and become more engaged with their neighbors and surroundings. Homeownership often contributes to a stronger sense of belonging and a feeling of being invested in one's community.

While interest rates are an important factor to consider when buying a home, it is essential to note that they fluctuate over time and can vary based on several factors, including economic conditions and individual financial profiles. While 7% may seem high compared to recent years when interest rates were relatively low, it is still within a range that has been historically considered reasonable.

Moreover, it's worth noting that interest rates are only one aspect of the overall affordability equation. Other factors, such as home prices, down payment requirements, and personal financial circumstances, play significant roles in determining whether homeownership is a viable option.

First-time homebuyers should carefully evaluate their financial situation, assess their long-term goals, and consult with mortgage professionals to gain a comprehensive understanding of their options. Exploring different loan programs, seeking down payment assistance programs, and working on improving credit scores can also help mitigate the impact of higher interest rates.

National Homeownership Month serves as a reminder of the many advantages of owning a home and encourages potential first-time buyers to educate themselves about the process and benefits. While interest rates are an important consideration, they should not discourage individuals from exploring homeownership opportunities that align with their financial goals and personal circumstances.

So, whether you (or someone you know) are hoping to buy a first home, move up to a larger home, or smart-size after kids have left for college (as we did, but that’s another story) we would love to help. We sell in all 77 neighborhoods of Chicago and at all price points. We also have experience helping buyers find highly qualified agents in many other cities in the U.S. Please keep Team Chris & Chris in mind during this National Homeownership Month and any other month of the year!