With 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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