Archive for February 4th, 2010

Right Back Where Things Started – But Worse

Thursday, February 4th, 2010

Well … we just completed an incredibly destructive 10-year circle in the residential real estate market. How’s that for progress? Who could have ever imagined it would turn out this way? The beginning of the Bush (43) era saw the advent of the notion that home ownership was a self evident “good” for both individuals and the US economy as a whole. Pursuant to that idea, a tidal wave of policies and practices were put in place and/or developed (in both the public and private sector) to boost home ownership levels well above historic averages. I think they called it the “stakeholder economy”. Without question, this greatly enhanced enthusiasm for owning your own home (and the newly available financing options to make your “dreams” a reality) found expression in the Las Vegas real estate market as much as anywhere in the country, if not more so.

So … where are we today? Home ownership just clocked-in this week at a DECADE LOW. According to the data jockeys at the Department of Commerce, America’s home ownership level just hit 67.2%, which is the lowest number in a decade. After four million foreclosure notices from 2007-2009, and more being processed every day, it’s safe to say that the entire exercise has been nothing short of a catastrophe, for both individuals and the US economy as a whole. Buying a home is a great idea when it makes REAL sense from both a practical and most especially a financial standpoint. Otherwise, it’s just not a good idea … it’s as simple as that.