If you listen carefully, people are still in conversation as to why they wish to get involved in the South Bay real estate market and eventually buy a home.
The #1 reason is still the fact they want to own the place they live in. And, they just want to be a homeowner. The tax considerations, growing equity over time and being able to renovate and remodel to their tastes or as they see fit, is part of being a homeowner. Even after the few bad years in the real estate market that we have all experienced, the vast majority of people want to invest in their own place to live.
The #2 reason is that many want to buy now and then move later. This is a partially market-based sentiment, of course, as the rationale for buying right now is that prices and interest rates are low.
The #3 reason is that they don’t want to have to move anymore. Many people bought homes at the top of the market and many ended up selling the home for less than they bought it for, and of course, many went underwater and lost the home to foreclosure. Loss of jobs, re-location and other reasons, including rising gasoline prices and prices of other items did not help the situation.
This all proves that owning real estate, especially the home you live in is still an American dream that lives on and on.