It Must Be "Fear".
By: Brad Rachielles.
As a REALTOR(R), the events of the past few years have concerned me. Arguably, my concerns should have started long before the mid 2000s, but I may not have had this thought at that time (see a comment at the end).
Home buying before the bursting of the real estate bubble was frenzied. Young and old buyers bought with little worry or thought about tomorrow. With the market increasing at fairy tale rates (here in California, at 15 to 20%.... or more), most saw buying a hoe as a money maker. They over spent because they could "always" refinance, take money out of their virtual piggy bank, and then sell for more if they wanted to or needed to. There seemed to be a safety net.
The bubble broke and buyers hit the brakes. Whoa! The reckless abandon suddenly did not work as a strategy. Values declined and sellers were taking a paper bath at first, and the economy was going south. No longer did some have the "refi/resell at a profit cushion and it became time to pay the piper for a whole bunch of bad choices made before the fairy tale had ended. Others were faced with life changing hardships and the world of real estate changed.
Then, there was a period when a big share of the buyers seamed to vanish. Caution became the operative line of thought. And, sellers, either under water or holding properties with much less equity either couldn't or wouldn't sell and stay whole. Some had no pleasing choices... only hard choices.
Fast forward to today...
Presently, home values are 30-50% below the highs of 2005 to 2007. Interest rates are at amazing lows. There are lots of buyers waiting in the wings that held off in the declining days (at least the multiple offers on many properties would suggest this). Home affordability is very high according to the index. Those that are handy and have some skills may find just the right home to make into their own. About half of the homes now on the market are ready to move into... or at least not distressed sales. Home ownership has MANY virtues beyond that of an investment, and by themselves, make home ownership is viable.
REALTORS have seen these conditions for some time.
It Must Be "Fear".
Buyers have seen the worst of things happen. They must be afraid of:
- Fear of Financial doom? - Fear of making the same mistakes that many made that are now Selling short or in Foreclosure... or worse.
- Fear of failure? - Doing the wrong thing... so doing nothing seems to be the better choice. That is possibly what is fueling the rental market increases.... High demand for rentals.
- Fear of compromising a life style? - Has saving and planning for a home been supplanted by the need for the latest expensive gadgets?
- There may be other fears involved, and I'd love your opinion.
THE SOLUTION: COURAGE, COMMITMENT and a LITTLE HELP FROM YOUR FRIENDS PROFESSIONALS...
If we have a situation of fear being the worst enemy, THIS CAN BE OVERCOME!
Decide what is important to you and MAKE A COMMITMENT to plan for the future. Start by learning. What will you have to do to do a home purchase right. If having the latest "do-dad" outweighs the benefits of home ownership to your family... then so be it. Your commitment to home ownership most be a big deal.
Get help from Professionals to learn the ropes. Meet with a trusted lender to learn what to do and what the costs will be. Prepare yourself by saving for a down payment. Learn about budgeting. When you learn how to avoid the pitfalls experienced by others in the past, you will gain the confidence and courage of your commitments and it can happen.
Learn about the real estate market. On line information is just not enough. Talk to a REALTOR to get the details about the LOCAL market conditions. The national press only has sensationalism to sell papers. What happens as a national average really has nothing to do with what may be happening in your neighborhood of choice.
The bottom line... MANY OF YOU READING THIS WILL BE SUCCESSFUL HOME BUYERS as long as you have the Knowledge and Commitment to do it right. Let know-how replace fear.
( I recently read a post by Seth Godin entitled "What Are You Leaving Behind". It spoke of ephemeral lines in the sand Vs. the lasting impressions and footprints left millions fo years ago that are lasting. I believe that sharing my opinion here will leave a lasting impression for readers because it is my best advice. Some may take exception, and that's fine, but this is what I would share with my own son. )
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It's All About YOU! Brad Rachielles, REALTOR, Upland, CA
Brad Rachielles, REALTOR. Helping Inland Empire Buyers and Sellers with their Real Estate needs in the Communities of: Upland, Rancho Cucamonga, Fontana, Claremont, Ontario, Chino, Chino Hills, Pomona and La Verne, CA.
Web Page: http://www.BradRachielles.com