Housing will eventually recover from its great swoon. But many real estate experts now believe that home ownership will never again yield rewards like those enjoyed in the second half of the 20th century, when houses not only provided shelter but also a plump nest egg.
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Dean Baker, co-director of the Center for Economic and Policy Research, estimates that it will take 20 years to recoup the $6 trillion of housing wealth that has been lost since 2005. After adjusting for inflation, values will never catch up.
“People shouldn’t look at a home as a way to make money because it won’t,” Mr. Baker said.
Read more in the today's NY Times.
And more from Yahoo Finance under the headline, "Now They Tell Us: Experts Say Housing Is A Lousy Investment And Always Will Be."
Don't forget to check back to Dan's Deep Creek Blog for your future updates on Deep Creek real estate.
2 comments:
As a retired banker and investor, I have watched the real estate market carefully since buying our property on the lake 25 years ago and now advise several businesses in the area. Your blog does an excellent job or filtering the 'spin' that the entire broker community in Garrett County routinely offers. I encourage you to continue to call it as you see it...few others seem willing to.
Beyond the flag waving and posturing of the real estate "Professionals" advice, I have been appalled at the lack of professionalism I have witnessed over the last several years. Offerings of verbal contracts, failures to collect deposits despite presenting contracts, manipulative pricing practices, protection of buyers at the expense of contracted sellers are all just some of the unethical behaviors I have seen recently by some of the areas best known agents. Despite the highest commissions in the state, (and some of the highest commissions in ANY industry!), these folks operate in a basically unregulated industry and routinely posture to maximize their own positions and income, secure in the knowledge that they can operate unethically with minimal oversight.
Everyone from Congress to Fannie Mae and from the Banks to Mortgage Brokers have taken partial responsibility for the froth built into many real estate markets over the last 10 years. Everyone, except the real estate industry, has faced new regulation and oversight. They operate with total impunity, take no responsibility for their actions and continue to suck significant equity away from every transaction - without adding much value in my opinion. These folks are as much to blame for creating the bubble we are all seeing bust at the moment as anyone, yet the continue to only be regulated by industry sponsored groups. I think it is time Congress saddle these folks with similar regulation to the banks and give the consumer's real recourse when faced with unethical agents.
Thank you very much for your comment. I am glad people like you are discovering this blog and spreading the word.
Please feel free to continue to share any thoughts you may have.
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