Jan 30 2015 10179 1

Dated: 01/30/2015

Views: 296

A basic lesson in economics teaches that levels of supply and demand point clearly to what prices consumers can expect before they even look at a price tag. When the desire to own a product is high, people are willing to pay a higher price-—but our Demand Index (and closings in many markets across the country) exposes a limit to this logic.

The American dream of owning a home is still very much alive—results of Gallup’s Economy and Personal Finance Survey revealed that seven in 10 non-homeowning adults aged 18 to 29 hope to own a home in the next 10 years. More significantly, 35 percent to 40 percent of non-homeowning adults of any age group who make less than $50,000 annually also hope to buy a home in the future. 

The rising cost of land, however—even in markets where lot supply isn’t as tight—directly affects prices builders charge for a new home. Yes, that's basic economics, but for the post-recession, non-homeowning American, the desire to own a home is trumped by a deep-seated fear of losing everything—a possibility the recession proved be a reality. Taking out a loan to buy a home beyond one's means feels more like Russian roulette than applying for a mortgage right now. 

Want to Advertise on this Site?

Latest Blog Posts

Open Houses This Weekend In Roseville

Click HERE for all open houses in Roseville This Weekend.This will be your one stop shop for all of your Elk Grove real estate needs!TXT: 530-321-4872 to set up any!!

Read More

What Is New In The Sacramento Restaurant Scene For 2019

BY BENJY EGELDECEMBER 27, 2018 03:00 AM,UPDATED DECEMBER 27, 2018 11:24 AMSacramento’s dining scene seems to slowly mature every year as the farm-to-fork movement evolves and restaurants go in and

Read More

Open Houses In Sacramento This Weekend

Click HERE for all open houses in Sacramento this weekend.This will be your one stop shop for all of your real estate needs!TXT: 530-321-4872 to set up any!!

Read More

New Construction Home List For Sacramento

𝐵𝑒 𝑡ℎ𝑒 𝑓𝑖𝑟𝑠𝑡 𝑡𝑜 𝑘𝑛𝑜𝑤 𝑎𝑏𝑜𝑢𝑡 𝑛𝑒𝑤 𝑐𝑜𝑛𝑠𝑡𝑟𝑢𝑐𝑡𝑖𝑜𝑛 𝑖𝑛 𝑡ℎ𝑒 𝑆𝑎𝑐𝑟𝑎𝑚𝑒

Read More