The Great American Dream has always been to buy the perfect home. In some cases, this means a home on the water or in others, it could be a home with a great back yard in a good school district. It doesn’t matter the exact criteria. The point is that it was exciting to think about how great it would be to realize the dream of owning the perfect home for you and your family.
Then, in 2005 -2007 came the Real Estate boom. Most of us remember what the real estate market and housing prices were like six or seven years ago. We all watched as prices went through the roof and many people were priced out of the market.
People who were working hard to achieve the purchase of their dream home found themselves questioning whether it would be affordable for them in the future. Even people that were earning a good living began to realize that with rapidly rising prices, they would never be able to afford that big home in the perfect neighborhood, or the home on the water.
Fortunately, for many of us who were saving for the perfect home, the economy nose-dived and so did housing prices. In some respects, The Great Recession has given many home buyers a second chance at owning their dream home. Think about it:
- Prices are way off the peak prices of the boom years.
- Interest rates are still ridiculously low.
- Mortgage money is loosening up.
- Sellers are still motivated to give buyers a “deal.”
- Real estate prices are appreciating and providing an investment to home buyers.
- The economy is once again moving in the right direction.
So, how come with all systems “Go,” prospective buyers aren’t knocking down the doors in their haste to purchase? The answer probably lies in their habits. We’ve all been beaten up so badly that we’re just waiting for the other shoe to drop. The sad part about this mentality is that it is usually followed with: “Boy, I can’t believe I didn’t buy back when prices were still great and I could afford my dream home.” Unfortunately, if we continue to see improvement, the decision to wait could haunt buyers for the rest of their lives. After all, who wants to live in a cabin after staying at the Ritz? Not many people. And, the kind of home you can afford today, compared to what you will be able to afford in the future, may be like being stuck with a cabin. And, your family deserves better, even if you don’t.
The lesson above is clear. It’s easy to be a Monday morning quarterback by pointing out all of the things that could have been. The best strategy to apply today is the following:
- If you can afford it,
- your family deserves it,
- just go ahead and get it!
- And, enjoy the ride!