National House Value Trends Continue to Support Home Ownership
by Rob on March 12, 2010
in Boiling Springs Market Conditions
I was just sent the below housing trend chart from Tambie Caggiano at Prime Lending and thought it under scored a very important principle that serves as a great reminder to us with all the main stream negative news regarding the housing market. That principle is that owning your own home can be the best investment one can make to build wealth and financial security.
As credit requirements loosened and virtually anyone with a pulse was able to qualify for a home loan, home ownership levels soared. On the surface this appears good. However, many people, now a home owner for the first time, were not able to maintain that ownership due to a number of reasons beyond the scope of this post here. (Remember my team worked for 2 years with 40 families at anyone time, trying to stop foreclosures)
In order to properly understand any free market one has to understand that the market place, if left to itself, will always find an equilibrium. Therefore, a trend chart will always have peaks & valleys. Periods of too much or not enough. Not only is this normal but it is healthy for the overall market long term.
The simple case is that our current situation was NOT due to normal ebbs and flows of a healthy market but interference by congress encouraging lenders to loosen lending standards. Beyond this, most of the “financial crisis” can also simply be attributed to greed at very high levels. Powerful people created speculative investments called “mortgage backed securities”. These inventions were then institutionalized which made them appear “OK” to the general industry sheeple. They then also leveraged money 70 times and more what they actually had. When first time homeowners started defaulting on loans this caused the inventions of the “powers that be” to crumble. The amazing thing about this is that they got YOU, the tax payer, to pay for their losses while they kept all their profits! That is a testament to their power.
So as we now hear about the “mortgage crises” and the ills of the financial markets do not let that confuse you to the benefits of home ownership. Do not let that confuse you to debt as well. Debt is bad. Period. Just read your Bibles. When buying a home your focus should be on financial security and paying off that debt. Don’t fall into the trap that you will have a mortgage for the rest of your life. Use debt as a tool to build security for you and your family.
Owning your home will ALWAYS be a better idea then “long term” renting. As Tami reminds us in the chart below.
This is a great time to buy a home.
Interest rates are projected to increase by virtually every market professional. Our national debt virtually demands it to increase since the rest of the world stopped buying our government bonds.
First and Existing Home buyer tax credits expire on April 30 (Home must be under contract by April 30 and closed by June 30)
The new “Palmetto Heroes” lending program was just launched for Teachers, Police Officers, Fire Fighters, and EMS professionals.
Market inventory of homes is huge so selection is varied and prices are suppressed.
Honest, experienced Realtors are here to help you. My business depends on referrals. Please know that you can feel confident sending your friends and family for me to help.
Keep Looking Up,
Rob
864-621-7900
House Value Trends Support Home Ownership
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