Home Values Have Remained Unchanged

By
Services for Real Estate Pros with TheHousingGuru.com

happy familyWith all the news about the declines in residential real estate, I thought it would be good to remember that home values have remained unchanged, and, in fact, haven’t changed in decades. In the midst of a recession, and with real estate prices plummeting across the country, how can that be?

 

It’s all a matter of understanding value and the difference between value and price. While home prices have dropped, home values have remained unchanged. Home prices are determined by the market; home values, by the family residing there.

 

Certainly home ownership isn’t for everyone, and the current housing market is evidence of that; but for those who can afford to buy and for those who realize the benefits, owning a home may just be the value many are seeking in today’s chaotic environment.

 

HOME OWNERSHIP PROVIDES:

● An anchor to the community (Owners are more involved in community, civic, and political affairs)

● Stability (Owners move less often and are more likely to develop relationships with neighbors)

● Freedom (Owners can customize or modify their accommodations as they wish and as often as they wish and will reap the financial benefits of their improvements)

● Pride of ownership (Becoming a home owner provides a sense of accomplishment)

● Security (Neighborhoods filled with owners have less crime, and strangers do not have keys to your home)

● Homes provide a place for family activities (Backyard swing sets, tree houses, or room for the family pet)

 

Yes, real estate prices have suffered, but home values have remained unchanged. Homes are a place where you can plant trees and watch them grow, nurture a garden or a lifetime of memories, and where families can bloom and grow. Owning a home may not make one rich, but that home can enrich a life with a bounty beyond measure.

 

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Re-Blogged 5 times:

Re-Blogged By Re-Blogged At
  1. BethAnn Long 02/14/2010 06:02 PM
  2. Carol Pease 02/14/2010 07:56 PM
  3. Cheryl Ritchie 02/14/2010 07:58 PM
  4. Jim Hale 02/15/2010 04:45 AM
  5. Donald Bradbury 02/15/2010 11:51 AM
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Show All Comments
Ambassador
2,388,103
Patricia Kennedy
Evers & Company Real Estate, Inc. - Washington, DC
For Your Home in the Capital

John, you've totally hit the old nail on the head with this one.  Yeah.  Value and money don't necessarily go hand in hand.

February 15, 2010 06:43 AM #26
Rainmaker
147,735
Home Design
Alpharetta, GA
Home Design and Real Estate

Great Post John, many people get stuck into seeing homes for monetary value only and forget the true value that homes provide!

February 15, 2010 07:10 AM #27
Rainmaker
453,501
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Christine - I truly believe we should recognize the difference.

Howard & Susan - The recession may be a reminder to look at the things of true value.

Mike - Thanks for stopping by.

Esko - I think many have seen the fallacy of the ATM strategy.

Niema - Thanks

Susan - HOME in capital letters!

William - Yes, value is subjective, and the values offered by a home are there if we choose to embrace them.

February 15, 2010 07:27 AM #28
Ambassador
417,252
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

There is more to value than money. I love the memories of what happened in the homes I have owned.

February 15, 2010 07:49 AM #29
Rainmaker
453,501
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Sharon - Thanks for your comments.

Russel - I would disagree. It's not the home values that have changed, it's that many have chosen to abandon them.

Frank - I suspect that more will evaluate the reasons behind their purchase. The recession has shown that we shouldnt' put too much emphasis on the financial aspect.

Tim - I agree that there is much room for improvement in the process.

Patricia - Thanks for your input.

Jennifer - A home can be much more than about money, but it's up to the individual to advantage themselves of the benefits.

 

February 15, 2010 08:00 AM #30
Rainmaker
453,501
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Joe - I too have great memories of HOME.

February 15, 2010 08:01 AM #31
Rainmaker
232,537
Elliott S. Topkins
Topkins & Bevans-etopkins@topbev.com - Boston, MA
Massachusetts Real Estate and Title Atty

Jonh--this is a great post and you said what needs to be said. this is the time to get back to basic life values; having a great hom to raise your family in is one of them

February 15, 2010 09:56 AM #32
Rainmaker
453,501
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Elliott - I suspect that the recession will awaken many to the true values of life.

February 15, 2010 10:08 AM #33
Rainmaker
335,388
Agent Aaron Vaughn, REALTOR® Listing Specialist
Capitol Home Team | Austin TX - Buda, TX
The $500 Million Marketing Advantage

By the very third paragraph of your post, you can see that, indeed, home VALUES have changed, along with prices, because the VALUE of homeownership has changed for many buyers.

February 15, 2010 11:24 AM #34
Rainmaker
341,279
Dawn Maloney
RE/MAX Haven - Northeast Ohio Real Estate Specialist - Hudson, OH
330-990-4236 Hudson Stow Cuyahoga Falls Silver Lak

Reality check - love this!

February 15, 2010 01:03 PM #35
Rainmaker
453,501
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Aaron - It's not the VALUES of home ownership that have changed, but of those who have chosen not to avail themselves of those values.

Dawn - Thanks for the visit.

February 15, 2010 03:48 PM #36
Ambassador
1,236,142
Erica Ramus
Erica Ramus - Ramus Realty Group - Pottsville, PA - Pottsville, PA
MRE, Schuylkill County PA Real Estate

As long as you don't HAVE TO or WANT TO move, your value hasn't changed.

I am amazed by articles where it says people are abandoning their mortgages and refusing to pay because their house value has dropped. They don't feel they should have to pay it, now that their value has dropped.

February 15, 2010 04:12 PM #37
Rainmaker
453,501
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

 Erica - For some, I'm sure it seems like the end of the world as most Americans have a great portion of their life savings wrapped up in their home's equity.

February 15, 2010 08:07 PM #38
Anonymous
Anonymous
Lucy

I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

Lucy

http://businesseshome.net

February 15, 2010 10:57 PM #39
Rainmaker
453,501
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Lucy - Thanks for your comments and for stopping by!  I hope I can provide useful information for you.

February 16, 2010 06:31 AM #40
Rainmaker
1,123,459
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Thanks for reminding us of the intrinsic and irreplacable qualities of home ownership.  

February 16, 2010 12:28 PM #41
Rainmaker
90,155
Mary Weaver
Prudential Lynch Realty, Ruidoso, NM - Ruidoso, NM
Expertise & Knowledge in Ruidoso-Alto Real Estate

Excellent post !  It's hard to put a dollar value on the quality of life, and the satisfaction of ownership, that a home can bring. Along the way, I have lived in apartments, trailers, small cabins, etc.   To me the value is in the security and tranquility of having a place to call "home".

February 16, 2010 12:37 PM #42
Rainmaker
453,501
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Li - Thanks for stopping by!

Mary - The best line about home ownership I ever heard was from a friend as he gave up apartment living. He said, "When I hear a door close, I want to know it's mine."

February 16, 2010 12:55 PM #43
Rainer
96,096
Ross Therrien
Prudential Verani Realty, Londonderry,New Hampshire - Londonderry, NH
Realtor, Broker Associate

Great post, you had my interest from your topic, I had to read this one.  Very well put. The old saying, the seller establishes price the buyer sets the value.  Had a relo buyer that offered more than asking price on a property that her best friend of 30 years told her about.  She had me write the offer before she even saw it.  Why so motivated?   Her best freind lived next door.   Value. 

February 16, 2010 10:32 PM #44
Rainmaker
453,501
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru


Ross - Sometimes we forget that there is much to a purchase beyond price or expected return.

February 17, 2010 09:23 PM #45
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