2012 Outlook
2012 Real Estate Outlook…opinion and analysis
Let’s face it, now is a terrific time to buy a home. There are however a number of factors which make the act of buying difficult.
The banks
According to “The Huffington Post,” September 9, 2011 banks in the U.S. posted soaring profits in the first three quarters of 2011, BUT the amount of cash the banks sent out into the economy as loans declined in the second quarter of 2011. By the way bonuses at the banks at the executive level, higher, fatter and more gluttonous than ever. The attitude at the banks, fat on tarp money, happy in greed; we got ours, so forget you America. Just look at Bank of America’s recent layoffs.
The government
It is NOT in the best interest of the party not in the Executive Branch to fix this problem until after the next general election cycle in November of 2012; to do so would most likely diminish their chances of taking the White House. This economy, this housing market, this lack of a job market is the PERFECT Albatross to hang around President Obama’s neck. Indeed there are factions on the extreme which hang this entire malaise in housing on Fannie Mae and Freddie Mac blaming these corporations for the vile pile of bile which were mortgage backed securities and the precipitation of this economic depression. Indeed if one listens carefully one would think that Barak Obama was CEO of Fannie or Freddie. Don’t get me wrong, I’m not advocating any one party or individual for office anywhere, I’m just calling it like I see it.
The melt down in real estate was the direct result of greed and fraud and nothing more. Wall Street came a calling with buckets of cash and most of us jumped in lock stock and barrel not asking…what if? No one forced anyone to make bad, silly no doc, low doc, no money down, 105%, 110%, 120% loan to value loans. The banks and America practiced BAD business and NOW we all must pay.
On the left and right, the problem is lack of vision; left politicians are too eager to waller in he said, she said and not offer up any sound solutions to this mess that we’re in. Let’s face it, the paving America as a means of spending our way out of this depression was a terrible ill conceived idea. It did little if nothing to put this country back to work.
Our debt
The people of this country by and large have done a stand up job of paying down our consumer debt. Now our governments must follow or the current economic climate will stay with us. Seriously, our national, state and local budgets must be examined and corrected with a scalpel and not a chain saw. We have to remember that eliminating programs also eliminates jobs, and those jobs are held by everyday real people who have children, homes, car payments and other responsibilities passions and loves. Let’s not kick anyone whilst they are down.
Solutions
Continue to cut your private debt. Look for creative ways to boost equity in your home but practice the tried and true. Pay down the principal on your mortgage and other loans when you can. Build a budget and life within it; don’t be afraid to tweak your budget. Paint the interior of your home, you don’t have to do it all at once, do one room at a time; add comfortable outdoor living space, such as a patio, deck or grotto. Look for ways to boost energy efficiency; add insulation, update systems, add sola tubes in the long run all of these small improvements will boost the value of your home. If you plan to buy remember…location, location, location.