This post is prompted by an article written by Mike Whitney that was originally published in the weekend edition (August 2-4) of Counterpunch - Here are some initial thoughts on the article and the housing market in general. What do you think?
As a real estate appraiser, I am always thinking about residential housing values. This is my job. As a husband and a father I often find myself questioning whether or not we may "put too much value on value." Strange to hear from an appraiser isn't it? Let me explain. We could learn a lesson from our parents and grandparents on this issue. For my grandmother and yes, even my mother, their homes were not like Cash Machines or ATMs. I was a real estate appraiser in the greater Sacramento Area at a time when some of the highest appreciating markets that were driven by new construction, Elk Grove, Natomas, Roseville, Lincoln and Plumas Lake to name a few. People really did view their homes like huge ATM machines, some doing cash out refinances 2 to 3 times a year! My grandmother never even had to deal with whether she wanted a fixed rate or an adjustable rate mortgage, better known as the "Option Arm". They were not even available in the United States until 1981. Homes 'back in the day' were meant to be lived in and to be paid off!This was part of many people's retirement planning. If you have no house payment, you will need considerably less to live on. Make sense?
As we consider the Greater Sacramento Housing Market (Sacramento, Placer, El Dorado, and Yolo Counties) there are so many opinions about value and 'recovery' and so many 'experts' on the topic. Ask one Realtor, you get one answer. Ask another Realtor and still, a different opinion. Listen to the radio and you will hear several mortgage companies telling you that now is "the best time in decades to buy a home or to refinance your current loan." It is difficult to know who is right-- all of these opinions can't be right, can they? As the title of this post suggests, the 'housing recovery' may be weak at best. No one likes bad news, and I am no exception, but what is even worse than bad news is good news that is untrue or misleading!
Every Sacramento real estate appraiser and resident can remember the turbulent times that led to the housing bubble 
bursting in 2008. We all know people who were negatively affected during these times, and the thought of something else happening scares us to death. I don't share this article to scare anyone with doom and gloom, although statements like "the Pollyannas in the establishment media have peppered the headlines with cheery stories about the faux housing recovery" (Whitney) may give that impression. I share it because it is always good to hear both sides of every issue, even if one of the sides may cause some of your dreams to be postponed.
I say this as someone who earns his living from valuing Sacramento real estate.....there is far more to life than owning a home! It is much better to save money, to wait until you can truly afford a home before making the 'plunge'. There is much more to think about than simply what your rent vs. your mortgage payment is. You may find this article on renting vs. buying informative. If you are planning on buying a home anytime in the near future, you NEED to read it.
Having said all of this, I implore you to read this article about the current trend in the housing market. At the risk of sounding saccharine; remember the things that make a house a home: family, being hospitable, holidays spent together, a gathering place for the kids...these don't cost money, nor are they dependent on home ownership. Don't get me wrong; owning a house and making it a home is a great opportunity for anyone who can truly afford it. I think I am talking quality vs. quantity. Winning the rat race still makes us a rat! We need to be careful to not let our debt-laden, stressed-out culture define the race for us.
