In light of the recent Fourth of July holiday, I was inspired to write about the uniqueness of our beloved country. The Fourth of July holiday is a symbol of independence and the most important part of independence is the freedom and liberty that it provides. Independence might mean differently for each of us, and as we become adults in the United States, independence is when we are able to live our lives for ourselves. Independence is best seen through financial security, such as having the ability to buy a home where you can settle in and see the fruits of your hard work. I feel that the United States is unique with many opportunities to create independence through wealth. Homeownership is one of those pathways.
In a recent survey done on eligible Gen Z voters, or the current demographic aged 12 to 27 years old, it was seen that their primary issue for this Presidential election is the affordability of housing in the United States. Housing Affordability beat out other issues like the economy, foreign wars, and democratic preservation as Gen Z’s most pressing issue.
One of the United States’ unique points is the many opportunities it provides, giving everyone a chance at homeownership. Too many Americans have the potential to be homeowners but are currently wasting away at the sidelines. Instead of investing in themselves, they are currently emptying their pockets by investing into the future of their landlords instead. The average rental price in Las Vegas was reported to be around $1,402 per month, and we can compare this to the median household only earning around $3,022 per month. This meant that around 86% of low income households had to pay almost half of their monthly incomes on rent alone. Earning higher wages also does not justify paying a huge sum just for you to not have any housing security in the future.
According to the chief economist of The Federal National Mortgage Association, commonly referred to as Fannie Mae, it is unexpected for those in our generations to see mortgage rates back at 3% in our lifetimes, and their analytical estimates place the mortgage rates at around 7% the rest of 2024, and at 6.6% by the end of the year 2025. In the last 40 years, US home prices have gone up by nearly 500%. Home Prices have already seen an increase in Clark County as well. Last June 2023, homes were being listed at a median price of $440K, and this year they are being listed at a median price of $465K, which is a 5.7% increase from last year. Homes were also being sold at a median price of $400K last year during the same period. This year they’re being sold at $445K, an increase of 11.25%.This also shows that presently, homes are being sold at a higher price than they were being listed just a year back.
As the value of the US dollar fluctuates, these prices will only become more unstable and unpredictable. While the odds of home prices becoming lower exist, is it worth the risk of waiting and seeing it constantly go up? This scenario might place you in the unfortunate situation of not having enough money to buy a house in the future.
It no longer pays to wait. In the last 12 months, average US homeowners gained an increase of around 10% of their equity. Mortgage rates also averaged 7.5% just this last May. It is within your best interest to start investing in a home today. Returns on your housing investment are better than most blue chip stocks and far less risky than a stock market investment. Don’t forget the tax advantages to buying a home to live in. This provides you with a yearly federal tax write off, plus the ability to eventually sell and take up to $550,000 (capital gains exemption) for a couple tax fee profit from your sale. There is no other investment available in the United States that allows such a high dollar figure tax free.
Current homeowners are gaining the ability to sell their houses at prices higher than when they bought them, while house prices are just continually going to increase. The perfect time to be a homeowner is now, it is time to stop sitting idly by and start grasping at the opportunities that our beloved country gives us to become financially independent.
Dulcie Crawford is a native Nevadan, born and raised in Las Vegas. Dulcie stays current with market conditions so she can assist you in making informed decisions. A senior Realtor with Signature Real Estate Group, she has sold over 1,200 homes since 1998. You are assured a professional experience when buying or selling Real Estate with The Dulcie Crawford Group.
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