
Headlines matter. Right now, it's hard to read about real estate without seeing a headline that suggests homes have become unaffordable for most Americans. In reality, there's hard evidence that shows how owning a home is more affordable than renting in most parts of the country, as record-low interest rates are keeping monthly mortgage payments about 23% lower than the typical payment of 20 years ago. Despite the facts, misleading headlines persist, and they impact how hopeful homebuyers perceive the market.
In a recent survey by realtor.com, home shoppers indicated they were surprised by what they could actually afford when buying their first home. In fact, 47% discovered their budget was larger than they expected. George Ratiu, Senior Economist at realtor.com, explains:
“For first-time buyers, especially, the drop in the 30-year mortgage rate…has provided unexpected leverage. Lower rates...

Over the past year, our homes have become an integral part of our lives more than ever. They're much more than the houses we live in. They're our workplaces, virtual schools, and safe havens that provide shelter, stability, and protection through the evolving health crisis. Today, 65.8% of Americans are fortunate enough to call their homes their own.
As we continue to think about the future, our goals for the year, and what we want to achieve well beyond 2021, it's a great time to look at the benefits of owning a home. Below are some highlights and quotes on the benefits of homeownership shared by the National Association of Realtors (NAR). From feel-good motivations to economic and social impacts on the local community, these items may give you reason to believe homeownership stretches well beyond your financial investment.
Non-Financial Benefits
Owning a home brings a sense of happiness, satisfaction, and pride.
- Pride of Ownership: It feels good to have a place that's truly your own, especially since you can customize it to your liking. The personal satisfaction and sense of accomplishment achieved through homeownership can enhance psychological health, happiness and well-being for homeowners and those around them....
SURPRISE: AMADOR COUNTY REAL ESTATE MARKET BOOMS AMID CORONAVIRUS PANDEMIC
AVERAGE HOME PRICES SKYROCKET 13% IN AMADOR COUNTY. QUEST FOR HOMEOWNERSHIP STRONGER THAN EVER, ESPECIALLY AMONGST URBAN BUYERS SEEKING RURAL, GOLD COUNTRY LIVING.
2020 will always be remembered as an incredibly challenging year in which COVID-19 seemed to shut down the world. However, you may be surprised to learn that our local residential real estate market boomed in 2020.
Despite the challenges presented by the pandemic, the Amador County housing market was a shining star in 2020 as average home prices skyrocketed 13%. While few people would have expected this (especially during the first few months of the pandemic when the real estate market and economy came to a grinding halt) the Gold Country real estate market came roaring back in late Spring and early Summer and hasn’t shown any signs of slowing down.
WHY IS THE GOLD COUNTRY REAL ESTATE MARKET SO STRONG?
From our perspective, the biggest driver has been the state and county’s requirement to “shelter in place” which has forced people everywhere to spend a lot more time at home. As days turned to weeks, and weeks turned to months, that extended time at home caused many people to re-evaluate their living situation and priorities. During this time of self-reflection, consumers seemingly placed a significantly greater value on the importance of a home and its new meaning as a place to live, love, relax and work. Additionally, as people were going through this period of self-reflection, employers (especially those in the San Francisco Bay Area) were also adapting to the pandemic and allowing their employees to work from home — many on a permanent basis.
As a result,...

Every year, households across the country make the decision to rent for another year or take the leap into homeownership. They look at their earnings and savings and then decide what makes the most financial sense. That equation will most likely take into consideration monthly housing costs, tax advantages, and other incremental expenses. Using these measurements, recent studies show that it's still more affordable to own than rent in most of the country.
There is, however, another financial advantage to owning a home that's often forgotten in the analysis – the wealth built through equity when you own a home.
Odeta Kushi, Deputy Chief Economist for First American, discusses this point in a recent blog post. She explains:
Once you include the equity benefit of price appreciation, owning made more financial sense than renting in 48 out of the 50 top markets, with the only exceptions being San Francisco and San Jose, Calif.
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