2nd Homes Reach Highest Point since 2006

Vacation-Homes-KCM

Some Highlights:

  • 58% of vacation homes purchased were single family homes.
  • 51% of vacation homes that were purchased were found online.
  • The median price of a vacation home is up 28% from 2014.
Advertisements

Where are They Moving too?

Where Are Americans Moving? [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • For the 4th year in a row the Northeast saw a concentration of High Outbound activity.
  • Oregon held on to the top stop of High Inbound states for the 3rd year in a row.
  • Much of this Outbound activity can be attributed to Boomers relocating to warmer climates after retiring.

Rent vs. Buy: Either Way You’re Paying A Mortgage


Rent vs. Buy: Either Way You're Paying A Mortgage | Keeping Current Matters There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s. As The Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.   That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship Management at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity. The graph below shows the widening gap in net worth between a homeowner and a renter: Increasing Gap in Family Wealth | Keeping Current Matters

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting with home values and interest rates projected to climb.