Owning a home, hasn't that always been the American dream? To achieve it was the pinnacle of life; proof that you are responsible and successful. The current condition of the real estate market, however, has turned that dream into a nightmare. One, which many can't seem to wake from.
Today, the dream isn't necessarily the desire to purchase a home; it's all about how to keep the one you've already bought. As property values plummet, many who borrowed beyond their means, or from unethical brokers, were finding their lives turned upside down and their belongings in the street.
The housing market appears to be making small strides towards improving. First time homebuyers are being lured into the market with an $ 8,000.00 tax credit coupled with near historic low interest rates. Median home prices have edged up slightly in the past month, regardless; there are still many deals to be had! Home prices are down over 16 percent from this time last year, with the national median price for an existing homecoming in at $173,000.00 for May.
However, we must also take into consideration that this figure does include the sale of distressed properties, which are, typically, well under market.Real estate investors don't appear to be purchasing in the numbers one might expect with the lower priced market. Many may have learned, or had been burned, when the housing bubble burst and left them holding properties for a loss. Let us hope that purchasers of tomorrow learned something from the events of the past year!
It is unfortunate for all homeowners that the housing market has fallen to the depths that it has. Many responsible hardworking individuals have found their property values fall, however, little else is coming down in cost, and jobs are still scarce. Almost all of us who have a piece of the American dream are effected in some way due to the current circumstances. For some, the effects are a little worse then others. In the South, for example, the median home price is down less then ten percent over the same time last year. In the West, however, the median home price is down just over 30 percent!
The blame game is still going on and probably will be debated for decades to come. Is it really a surprise that individuals who thought an interest only mortgage was a good way to purchase a house that they couldn't otherwise afford are now homeless? Is it any wonder that a bank that would issue a mortgage rooted in the need for real estate appreciation failed? Those are examples of poor financial decisions with no one to blame but those who offered, and those who accepted the terms.
There are no guarantees in life; just as there has never been a guarantee that your real estate would appreciate. We need to remember that owning real estate is not an entitlement; it should be considered a goal. Something you work, plan, and save for.
It's All About Keeping the One You've Already Bought