I often run into folks who have owned their home for years, some as long as 20 or even 40 years. That truly says “home” to me! I can’t help but to ask them if they ever wish that they had owned more homes along the way. A resounding “yes” is always the answer.
This speaks volumes to the word “home,” not house, and the memories and the pride that goes with owning your little piece of this earth. It also speaks to the fact that the current readjustment in price is only a reset for steady appreciation in the future, as the population continues to grow. Who doesn’t want to stand in the yard or on their condo porch and say “This is my solace for old age?”
Will homes appreciate again?
This is a trick question because many neighborhoods have never experienced depreciation. How does that happen? It is all about Supply and Demand as well as location, location, location. There are many, many neighborhoods that have been plugging along at 1-3% APPRECIATION PER YEAR. That’s right, appreciation, not depreciation.
For the majority, homes will begin to appreciate in value, but modestly … and from a new reset point (the way that they did over the past 40 years).
As 2010 comes to a close, you can make many observations. Government is the last one into a recession and they are now arriving to this party as late as can be. We are all eating dessert. What I am saying is that the federal, state and local governments are now, and for the next few years, tightening their belts like never before because revenues are down and increasing taxes is not an alternative. Elections in November also proved a point that both sides of the aisle must become more fiscally responsible, like we’ve all had to do at home and at work.
Charlotte Douglas International Airport has always played a huge part in attracting Fortune 500 companies as well as individuals whose business requires them to fly direct and often to serve their clients. In fact, the Charlotte Chamber and Charlotte Center City Partners maintain that our airport is the top asset to our region.
In the September issue of Airport Business Magazine, Michael Gallis and Holland Young spoke about the illustrious past and what the future has to hold for the Charlotte region and the impact that the airport may have on that future.Both the airport and the Charlotte region have come a long way since 1936 when the Charlotte Douglas International Airport first opened.
A Congressional committee was recently tasked with developing ways to lower our National deficit. Similar to past actions, the proposal was to cut significantly into the mortgage-interest deduction in order to free up revenue that could help bring down the deficit. Many in Washington see mortgage-interest deduction as “low hanging fruit.”
The good news is that once again that proposal has been rejected. Your Realtors® nationwide have been diligent in fighting this on behalf of all homeowners in America. I will tell you however that this is mostly not a dead issue and will come back once again.
Let’s be really honest here, you and I as home buyers and homeowners view the mortgage-interest deduction as a big incentive for owning a home. Each year, we are able to deduct our mortgage interest from our income tax bill. It is the single largest subsidy for housing in the U.S., and is projected by some to reduce tax revenue by $131 billion in 2012.
Everywhere I go in North and South Carolina, I am asked: “How is the residential real estate business?” and “Have we reached the bottom yet?”
I can truthfully say that we have bottomed out in most marketplaces and neighborhoods. Realtors®, bankers, developers, buyers and sellers all have a pretty good feel on where market values now exist. The “free fall” of home prices and values and the fear of the unknown, exacerbated by the constant flow of foreclosures and short sales, have slowed down.
I went through college pounding nails and framing residential houses during the summer and winter breaks. That experience, coupled with growing up as an “SOB,” (a.k.a., Son of a Broker), had me acutely aware of the pros and cons of becoming a Realtor®. In the early 70’s, it seemed every business major like myself pictured themselves as a banker since most of the college recruiting seemed to be for that particular career.
I minored in labor arbitration, thinking that I could bring folks together. I found out very quickly in my senior year as an understudy that it was not the career for me. “Ruthless” is a word that resonated. Between my junior and senior years, instead of framing houses, I sold real estate. Wow what a difference!! Helping people reach their dream of home ownership and coaching clients on construction detail, which I knew instinctively, made it so much fun.
We look forward to it for weeks or months – the closing of a home, the grandchildren visiting, lying on the beach, the musical, the marriage or graduation, the return home of a soldier or a child from college for break. Oh, just the sound of it as I am writing feels amazing, refreshing, and relaxing. It’s the anticipation of it all!
Do you ever notice that when you go on vacation one of the best parts is the build up? It’s like that for almost everything we do in life – it’s the building that is actually the best part. Unfortunately, most people don’t realize this until they finally reach the destination. We look back and realize it was the process of getting there – the build up or building of the outcome which was the best part. We look back, only to find that one of the best parts has already passed us by. We were so busy focusing on everything else that we didn’t take the time to appreciate it.
Ever heard the old adage, “Paralysis of the Analysis?” Well today, many individuals and businesses, both large and small, are centering their decision making process around this very idea. They are unsure whether or not they should invest time, energy and money into something they need, want or believe in.
In my opinion, America is either at the bottom of this economic cycle or close to it. As to when exactly we will be off the ground and on the mend … that is being argued by economists daily all over the world. The problem with economic studies is that the most economists are reading history or judging the future based on historic charts and recovery tools that worked in the past.
We are in a new territory today, and we are writing history. The data, before it’s printed, is outdated and being rewritten.This recovery is like no other because no one has dealt with the present circumstances.
Confidence and determination, or swagger, have served Americans well since our first ancestors set the stage. How do we get back to that way of thinking? It is all about mindset after all. America’s mindset, if truth be told, is the world’s mindset.