We have all heard it said, “we never promised you a rose garden”. Well who would have thought that real estate would fall in value in some areas by close to half its value. The simple answer to that question is, no one who was buying a home in the last 4 years.
But the facts are the facts and values have fallen. In some areas of the United States people are saying we are at the bottom of the market and prices are going up, as up is the only place price have to go. Others are losing their homes and looking a working on a “Short Sale” with their lender.
The media announce with some frequency stories of the shadow inventory of foreclosures that are sitting in the wings waiting to come to market. What does this mean to all of us. Well, I am hear to tell you that trying to predict the future is no easier now than it was for most home buyers when they purchased at the peak of the market.
I think the number one rule for all home buyers is to look at any purchase as their home not an investment. A home is a place where you are happy to lay your head on a pillow and go to sleep after a hard days work. A home is a place where you take pride in bringing your friends and family.
It is true we have historically high foreclosure and default rates. The Government has come up with plan after plan to try and slow this process. I recently hear an economist speak in San Diego to a large “Investment Club” and he said that these Government efforts to slow foreclosures presents a difficult problem in tracking the problem from a historic standpoint. The problem being this is all new and the plan may just be working. There is however still no way to predict the outcome of the plans, just like it is impossible to read the future.
President Obama’s Foreclosure Alternative Program may be some help as it attempts to save some homes in a loan modification program and still others may be aided by the Pre Approved Short Sales. This Program may aid the bank avoid the properties being destroyed by angry homeowners that are losing their homes.
In my opinion no one more than experienced Realtors would like to see the market stabilize. We see the sadness in people’s eyes as they lose part of the “America Dream”. But we are Americans, we will come out of this and we will help our fellow man as we can. Soon the anger will subside and we will be back at work, because we are Americans and we have seen worse things and overcome. It is not part of our character to give up on anything. Our homes are part of our dreams and we do not give up on our dreams.