Real reason we buy real estate
From the National Association of realtor, buyer who brought the a home was asked : Why did you guy. One response was overwhelming: Because I wanted a home. Not because of the tax benefits, or even the tax credit. Not because of the space. Not because of a job change and relocation. The primary reason people buy homes is that they want a home of their own.
Their responses were given during the deepest depths of the housing recession, when the values of homes in most markets were approaching a double dip.
Data also point out the retention of home that are decreasing in value and are worth significantly less than the corresponding mortgage debt. But the core truth around walkaways is this: Far, far fewer owners do it than “should,” from a pure financial perspective. About 23 percent of American homeowners are underwater — as high as 77 percent in Las Vegas.
Why do homeowner who are facing foreclosure still even they have negative equity ? Because they want to. Study after study shows that people simply want to keep their homes. Sure, the deeper underwater a home gets, the more willing its owner becomes to walk away. But most homeowners — almost 90 percent — think strategically defaulting is immoral and unfair. And others are simply attached to their home..
But it looks like there’s a big chunk of big real estate decision-making that is, actually, quite simple to understand. We buy homes because we want to. And that’s why we keep them, too — for better or for worse.