COMMENTARY | Even though I bought a home close to the height of the housing bubble, I don't want to see a housing rebound anytime in the near future. According to an article by Reuters, it may take a generation or longer for the housing market to rebound. That would help our economy in my opinion.
Everyone deserves a fair shot at home ownership
House prices were inflated for years. I am not sure why we would want to see house values go back up to what they were at the height of the bubble. I want my sons to be able to afford a mortgage when they get out of college in a few years. I think everyone deserves a shot at owning a home that they can afford.
Home flippers were acting like day traders. A home is meant to be lived in.
Resale home prices are realistic
House prices right now seem perfectly realistic to me, especially where I live in Tampa, Florida. In some cases, houses are still overpriced. New home construction is much more expensive and overpriced, in my opinion. Most of the new home builders in Florida seem to depend on people moving here from other states. They had equity in the homes they sold.
Buying a new home in Florida is a lot like buying a new car. Once you drive it off the lot or put the welcome mat in front of the door, your "asset" immediately depreciates in value. Resale homes just don't sell for as much as new construction.
Lower home values means lower taxes
Another reason I'm not too anxious to see a housing rebound is the fact that my property taxes are so extremely low. Our property taxes have been gradually decreasing every year since we bought our home in 2005.
I have relatives who purchased their retirement homes with cash. Lower property taxes means they will have a better cash flow during retirement. They aren't worried about the value of their homes increasing because they don't plan to sell.
Stable home prices means stable communities
My husband and I don't plan to sell our home either. If home values remain stable, perhaps people will begin to settle down. That could be good for the economy. I've always heard the average "millionaires next door" live in the same home for more than 30 years. By staying in one place, we can focus on paying off our mortgage in our 40s. With better cash flow, we will have more disposable money to inject into the local economy.
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