Individuals are locking down loans and buying home

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Real Estate


Is homeownership still a cornerstone goal for Americans? According to RE/MAX President and CEO Nick Bailey, owning real estate continues to be a source of security for many and a sustainable solution for building generational wealth. Best of all, this proves true in any housing market, even when facing factors like interest rate hikes.


Yet prospective homebuyers may benefit from today’s market more than they realize. According to the latest RE/MAX National Housing Report, for-sale homes are generally spending more time on market, creating more opportunity for buyers. The report also showed more homes being listed than the same time one year ago.


Bailey joined NewsNation talk show “CUOMO” to share how in today’s economy, homeownership remains a goal – and an attainable one – for many.


Here are the three key takeaways from the news segment:

1. “Build generational wealth”

Owning a home comes with both financial and emotional benefits, according to Bailey. A primary benefit is owning an asset that can appreciate in value over time, ultimately creating generational wealth.


“The average renter’s net worth in [the U.S.] is [around] $6,000, yet the average homeowner’s net worth is over $200,000,” he shares. “The last three years especially have proven sanctuary is home. There are a number of benefits that have proven that homeownership is great for a lot of people.”

2. “Marry the house, date the rate”

Amid a shifting housing market, Bailey clarifies to consumers that there are a multitude of mortgage options available, and depending on which a homebuyer chooses, it can be amended over time.


“The reality is, most people pay their mortgage first. And by most accounts, even though markets fluctuate on a short-term basis, it has shown over the years that a home becomes a good savings account,” he says.


“There’s a saying in our business: ‘You marry the house and you date the rate.’ There’s always an opportunity to look at alternate products,” Bailey continues. “You don’t have to do a 30-year-fixed mortgage – there are adjustable rate mortgages (ARM) at lower rates. And, there is opportunity to refinance.”


Even when purchased with a mortgage, Bailey explains, owning a home is still financially beneficial. He points to the fact that many people live in their home for years before selling, which creates equity even for those who purchase with loans.


“If you look at the data behind [homebuying] decade-over-decade, [you’ll see that] for many people – even at the cost of borrowing money to make that happen – it can still be a positive outcome for their overall net worth.”

3. “Know that homeownership is not one size fits all”

In addition to exploring a bevy of mortgage options, a homebuyer may purchase a property for a myriad of reasons – and the timeline in which it happens will naturally vary for each individual.


“Homeownership is a personal journey for everyone – it’s not one size fits all,” Bailey says.


He emphasizes the philosophy of pursuing real estate at the best time for a specific person or family, and not getting wrapped up in the prospect of market change.


“It’s not about timing the market or timing the perfect rate. The timing is about, ‘Is it good for me? Is it good for my family? And, do I have a job that I am secure with? It’s about timing on the personal, individual level.”