Is Housing Poised For A 2011 Comeback?
Locally there was a poll taken of consumers on what they were thinking about the housing market. Overwhelmingly it was stated that they believe it’s much easier to buy a home in this marketplace than to try to sell one.
That seems to be the belief across the country as well. Large housing companies are building homes again, even in areas where housing really fell flat during the economic crisis. Here in Syracuse it never stopped, just slowed down a bit, and yet homes continued to be sold as long as they were new homes.
I’m someone who tends to believe that without a symbiosis things can’t be seen as working out all that well. Therefore, I don’t believe that just because new homes are selling that it makes everything better if those in existing homes can’t sell them, even though their prices continue to fall. That in and of itself is a major sign that there’s still an issue, as traditionally we’re all used to our homes going up in value. At least that’s the dream we were sold on when we bought our homes, and it was fairly true at that time.
So, if the adage for home builders is “build it and they will come”, what slogan can existing homeowners looking to sell their homes live with? Right now it borders close to a line Richard Pryor used in one of his comedy routines, slightly altered here: “You bought it, you keep it.”
It’s pretty clear now that going forward, anyone who believes that buying a home is an investment into their future is living a lie. Sure, home values may go up, but they could just as easily fall. I tend not to trust the big banks one bit, and they’re the ones who are still giving out the most loans for homes, even if they’ve presently increased their standards for whom they’ll give loans to. With so much still in the news about illegal foreclosure practices, I think anyone who goes into home ownership with their eyes closed it kidding themselves and possibly putting themselves in jeopardy later on.
Home ownership is expensive. It can be fun as well, but you need to be ready for the ups and downs of it. After all, you’re signing up for a long time.