Homeownership solid investment

Despite economic uncertainty and recent challenges in the real estate market, nearly eight out of 10 Americans believe buying a home makes good financial sense. This is according to the 2010 National Housing Pulse Survey, an annual study from the National Association of Realtors that measures how affordable housing issues affect consumers.

Predictably, job security concerns were among the highest in eight years of sampling. A majority of Americans said layoffs and unemployment are top concerns in their area and eight in 10 say those issues are barriers to homeownership. The Orlando Regional Realtor Association also cites job security as one of the main obstacles for consumers who are considering whether to buy, although homeownership is still a worthy long-term investment.

"There is no doubt that job recovery is needed to get the economy and the real estate market back on track," says ORRA Chairman of the Board Mike McGraw, McGraw Real Estate Services. "However, despite employment concerns, Americans continue to believe that owning a home is part of the American Dream, and it is a dream they still strive to achieve. Homeownership has proven to offer many social benefits and build wealth over the long term."

Historically, low interest rates and affordable home prices are attracting buyers to today's housing market. In Orlando, the average interest rate in September was 4.46 percent, and the affordability index was a whopping 262.01 percent. Orlando buyers who earn the reported median income of $53,276 can qualify to purchase one of 9,941 homes in Orange and Seminole counties currently listed in the local multiple listing service for $275,107 or less.

According to the survey, more than one-fourth of renters say they are more serious about purchasing a home than they were a year ago. In addition, 63 percent of renter respondents say owning a home is a priority in their future, and nearly 40 percent say it is one of their highest priorities.

Despite attractive prices and low rates, a majority of Americans, 79 percent, consider having enough money for down payment and closing costs to be among the biggest obstacles to owning a home. Survey respondents are also concerned about their ability to be approved for a loan.

"When deciding whether to buy a home, buyers should carefully evaluate their finances and get pre-approved for a loan before beginning the search process," says McGraw. "Realtors are a valuable source of information about the costs associated with buying and owning a home and can help consumers navigate the increasingly complex buying process."

—Courtesy of the ORRA