The constant stream of news stories about foreclosures, increased housing inventory, and the virtual collapse of home builders’ confidence may foretell a disturbing trend; and the negativity associated with housing could impact the market for years. Once seen as a solid investment, residential real estate has lost its allure for those who saw it as an effortless means of enhancing retirement savings. However, with an economy still struggling to come out of the worst recession in three quarters of a century, many have changed their opinion.
Having lost much of its perceived investment potential, housing must now rely to its emotional appeal—a place to create memories grounded in the concepts of home, stability, family, security, and sanctuary. Not to be scoffed at, many find such values to be worth far more than financial considerations.
However, we all have differing needs and perceptions; and the perception de jour seems to be that housing is a bad investment. And when analyzed purely for investment potential, housing often comes up short. While some tout the true values of home ownership, large numbers remain skeptical, remaining on the sidelines, anticipating that magical moment when stabilization returns to the housing market.
With long-term unemployment at record levels, consumer confidence shaken, and an awareness of the significant declines in home prices, residential real estate could be in a long-term struggle as the negativity associated with housing could impact the market for years.
The Housing Guru: The expert source for all your housing questions
I see your points, all of them, buy I hope that you are wrong. As Americans, sometimes we just get tired of being tired and work to make things better.
Julie - We'll have to work hard, but our problems can certainly be overcome.
John,
And I just added another report which adds to this.
Terry -I saw it. Doesn't sound good.
I think the former exuberance of the price-increase bubble has been replaced with the now melancholy of the price-decrease valley. That is a mindset that has come into play, and I agree with you!
Jay - I'm often criticized for my negativity, but an unbiased look at the facts is disturbing.
Hi, John. There's a big difference between being negative and being realistic. I have to wear my muzzle now when we watch the news because my husband criticizes me for being "so pessimistic."
I don't know how you can be realistic and not have a pessimistic world view! If people are optimistic about anything, it's because they have learned to be grateful for much of what they once took for granted....shelter, food, health, a job!
Leslie - Sounds as if you may like a website I'm preparing to launch: ImSickOfIt.org. I'll let you know when we go live.
John,
Housing as a vehicle to build wealth has taken a hit, no question. It'll take some time to erase the negativity but eventually, when the economy gets back on its feet, things will start turning around again.
Esko - The question for most is: When?