Upholding the American Dream
Homeownership has been an American staple for most of our existence, even more expansive since the end of WWII and the baby boom. Owning your own piece of land and a warm house to go with it has been a great source of pride for American families for generations. It is a keystone to wealth and financial independence and has the lowest risk of all monetary investments. Homeownership is good social policy and has brought millions of families economic mobility, emotional security, and creates immense pride for our citizens. Coming off the month of April which is a time when we celebrate Fair Housing Month, it is very important to remember that the path to homeownership for minorities wasn't always as easy as it should have been. Those opportunities along with many other civil rights improvements were addressed in the late 1960's, and this country has been so much better off for it. Democracy and fair housing go hand in hand and we at Master Title Agency are proud to be a small part of this important and uniquely American dream. We are particularly proud of the 5-6 current and former staff who have become first time homeowners since working at Master Title. Two big challenges coming out of this red hot real estate market are the increasing influence of investors buying up inventory and converting them to rentals, and the general affordability for first time homebuyers. First time homebuyers looking for properties under $300K are in a particularly difficult position as these properties are snatched up before the ink on the listing agreement is completely dry.
Real estate investors bought a record high of 18% of properties in the 4Q of 2021. That number in the same period of 2020 was 12.5%, a shocking increase. This historic pressure on prices, along with rising interest rates will undoubtedly freeze millions of potential first time buyers out of homeownership this year. Homeownership is the leading edge of a strong and healthy economy and also provides for stable communities and families. The pride and respect that comes with buying your first home cannot be overstated. American homeownership must continue to remain accessible, affordable, and part of the American dream for a functional society. That dream must never die.