June is National Homeownership Month! This month is an effort to educate homeowners as well as future homebuyers about the current housing market. This also acts as a longstanding commitment to creating more homeownership opportunities to Americans nationwide.
Everyone deserves a sense of security and somewhere they can call home. This is why this month is a push to educate and create awareness about the current critical housing supply and affordability challenges. Homeownership is a key part of building wealth overtime, however there is a current lack of affordable housing opportunities available.
Observing National Homeownership Month is simple. If you are looking to buy a home in your future, whether it is your first home or not, looking for resources online or talking to your advisor to break down your options should be your first step.
As we all know, the prices of homes have dramatically increased from the mid 1900s. The primary reason for the increase in price is the changes made to the mortgage process. These changes allow people to borrow more money in order to afford a home. The idea of a 30-year mortgage is not new, which does give some Americans more flexibility and opportunity to afford the home they want. However, the price of housing has been skyrocketing, partially due to the lack of inventory. In recent months, the price of labor and lumber have been on the rise. Because of this, it creates a challenge for those of who are looking to build a house in the near future. If you are looking to build a house, we suggest you speak to your advisor to calculate how much you are able to comfortably spend on a build.
That being said, how many homeowners are in the United States today? According to the Census Bureau data, in the fourth quarter of 2020, there were about 82.8 million owner-occupied households in the U.S., bringing us to about 2.1 million more than the previous year. Majority of first-time homebuyers being between the ages of 23 and 31.
It is smart to take this time to speak to your advisor about any goals or concerns that may have to do with purchasing a future home. Take this opportunity to check your homeowners insurance policy and make sure you are confident in your current position. Use this month as an opportunity to speak with the people you care about that may be in the position to purchase a home soon. Share your knowledge and resources to ensure they are on the right track as well.