Homeownership still appealing to Americans
Following the housing bust of the mid-2000s, homeownership lost its appeal for many Americans who were left with serious financial difficulties. Now, in the wake of the incipient economic recovery, owning a home is an attractive notion to many people once again, and buyers may be interested in one of the homes for sale in Santa Clara.
According to the 2012 PulteGroup Index (PGHI), many Americans made lifestyle changes in 2012 and have improved confidence levels in the housing market. The primary reason cited for purchasing a home or the intent of buying in the near future was to start a family.
"Across the board we are seeing more confidence in the market in general. Also, more families are making a deliberate choice to build a better bond among the generations and live closer to family and friends," said Deborah Wahl Meyer, senior vice president at PulteGroup. "PulteGroup conducts the quarterly surveys in conjunction with our ongoing consumer research efforts to keep a pulse on consumer trends and understand what's important to homebuyers and how they truly live in and enjoy their homes."
The PGH survey found that 61 percent of renters plan to buy a home within the next two years. Across the United States, rents rose as demand increased, especially in sought-after metros like Santa Clara. According to Rent Jungle, the average apartment rent within 10 miles of Santa Clara was $1,959. One-bedroom units were approximately $1,648 a month and two-bedroom apartments had an average rent of $1,945.
The average apartment rent rose by $67, or 4 percent over the second half of 2012. However, rents have increased even more for one and two bedroom units - rising $101.5 (7 percent) and $155 (9 percent) respectively.
With rents rising at such a rate, it's not surprising that Santa Clara residents may be looking to trade in their leases for mortgages. The added space and potentially decreased living expenses should be appealing, especially for people with growing families.
Mortgage rates remain affordable for potential homebuyers. According to Freddie Mac, the average 30-year-fixed mortgage rate was 3.35 percent for the week ending December 27, 2012. The 15-year fixed mortgage rate ending on that same date was 2.65 percent.The decreased rates for both of these options could make purchasing a house more affordable for potential homebuyers.
Purchasing a home in Santa Clara is ideal as the nation's economy continues to improve, mortgage rates remain affordable and rents increase.