HOUSES may not be homes, but homes could certainly be houses people live in. What happened in this previous housing crisis taught us an important lesson. Economic and demographic changes may severely impact the value of houses when its time to sell. We live now in an “Ideas Economy” with a shrinking industrial base and a greater premium on knowledge and personal connections, which make social, educational and business networking ever more important. New social media haven’t reduced the importance of geographical neighborhoods.
A famous book author predicted that the coming decade will likely see more intense clustering of jobs, innovation and productivity in a smaller number of bigger cities and city region. This outcome if true could affect prices of existing homes and decision making of big builders moving forward to find more homes to construct.
The key factor to remember from what had happen in the past is that everyone who had bought homes that are newer, cheaper but much more further than they would like to drive too, had lost them. This homebuyers repeated bought homes that they had to drive several hours a day to get to work to, all move back closer to their work places. At the moment, walkable urban areas, places where people can walk to work and to stores are becoming more popular. A Survey sees higher cluster to show higher property value appreciation. Far-flung suburbs are losing value relative to cities and close in suburbs that offer such walkable areas. These denser populated places seem to fit in better with more environmental conscious values too.
Attitudes towards renting have also been changing. Buying a house has become less appealing to some, 57 percent of the surveys said so. For the most part, renting can be just as successful as owning at achieving the American Dream. What you owe, you don’t own. We will hardly ever be able to own out house free and clear, with home prices being so high nowadays.
I am comparing to homebuyers in the late 60’s, where home prices where averaging 50-80K. Back then, homebuyers were only using about 30 percent of their income to pay for their mortgage payments.
The point I would like to make is that homebuyers should really put into consideration facts about what they intend to do with their homes, areas of better school districts that will affect house values in the future. A great factor is the distance to shops and work places that homebuyers have to endure day in and out, our days are already short and time should be a major influence to your decision where you would like to buy.
I am all for owning a house but I have experienced my second housing crisis and I see the same pattern of people losing their homes for the same reason all over again. So, I would like for you to be open minded and see the good of course but also try to find something negative and discuss it with your family and if it will all work out then pull the trigger. This is definitely a good time to lock in on these very low rates now. If you want to be mobile and ambitious, it might be sensible to rent first. It may be wiser to choose housing that best meets your personal needs, among the choices you can afford.
For homeowners that might have some more issues with Re-modifying or Re-financing your mortgages, there are newer programs that will come out to hopefully accommodate your needs for better payments. Please call Ken Go of 1st Innovative Finance at (562)508-7048.
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Thanks for your inquiries, please Call Ken Go at (562) 508-7048 or write to [email protected].