There is no debate that the Real Estate market took off after 9/11. We were at a very rough cross roads in our history and I guess anything could have happened. One way or the other we, as a country got motivated and there are too many factors to get into here as to everything that contributed to our financial rise and fall of the last 6 years.
This is not about blame. Yes there were crooks on wall street just as there were crooked lenders and crooked real estate agents and crooked politicians and crooked everything else. We sensationalize them minority and blame the majority. Truth is most of us did what we were told-pieces in the machine; expendable pieces at that.
Rather the purpose of this article is to look at the results-the trends that were started and look at whether or not they will continue or not. Yes, I know we are at a standstill, taking two step backwards before they cycle allows us to take our 3 or 4 forward. But when we do reverse the current cycle, where will we go, as a society? That's the question I want to explore-as it relates to real estate and the housing market only.
First money got cheap and we decided to trade our money for more space instead of time. Common everyday houses in common everyday neighborhoods were built exceeding 3,000 sq feet as the norm. Before you knew it, the average new home being built was rapidly approaching 4,000 sq feet with many exceeding that. 5,000 sq feet may not have been common, but then again it was not unheard of, either.
We bought into the need for crown molding and granite counter tops-as every day common amenities. Heck, one builder even showcased their model homes and sold them as ‘Everything Included' - and then we wanted more.
Our homes got so big-we had so much space that a single family room was not enough. No, we had to have a loft or bonus room as a second place to get away and watch some TV...or whatever we did. Of course we need a retreat in our master suite with the dual walk-in closets...just so mom and dad could watch TV in the privacy of their "own space".
Our Homes Were Suppose to Make Us Feel Secure
We traded our time and security for space and stuff. Sure we have 3 or 4 flat screen TV's, a couple of car payments until the kids start to drive and then they each amount to yet another new car payment. Boy, do we look good as a society...
What about our time and our sence of security. Instead of having more time or a quantity to spend with our families we thought we would trade it for "quality time". We wanted to be home and sheltered from the evils of society, especially financial worries. Instead we work more to earn more to support our lifestyles.
As baby boomers, we thought that we would be an empty nester like our parents were who got to enjoy which really should be the very best years of our lives. Instead, our kids are refusing to move out and start their own lives. And why should they? With the economy the way it is and the uncertainty of the job market, who can blame them for wanting to stay close.
So now we are seeing multi-generation families living under the same roof. Unlike previous generations and cultures where this is common, in our society we have so much space in our homes and such demands on our individual lives that there really is very little time for ‘family'.
So look at the demand that is being built up. As the market continues to cool and in anticipation of the new economy tht has yet to emerge, there is a demand for housing that will go bonkers, once it is released. So, will the builders be prepared? Are they going to continue to build castles and mansions.
Or, will society demand smaller homes and demand to be able to take back their time for the space they have started to become accustomed to? If anyone asked me, we would see a lot of smaller homes with smaller garages for economical cars-not big enough for 3 oversized SUV's. Housing has to make sense-I don't think anyone in Southern California really wants a condo-they want houses-but make it small enough for the family of the future-1300-to 1500 sq ft. Pack in value and lifestyle into the communities, similar to a condo, but houses. Do this and we may be able to get the 30 something kids out of the bedroom they grew up in and into their own place...finally.
Blessings to all who read,
John Occhi, REALTOR®
Century 21 Crest - CrestREO
Hemet - San Jacinto Valley
Servicing THE REO Needs of Asset Managers, Banks and Lending Institutions in the Hemet - San Jacinto Valley, Temecula, Murrieta, Winchester, Wildomar, Menifee, Sun City, Perris, Lake Ellsinore, Moreno Valley, Romoland, Homeland, Nuevo, Banning, Beaumont, Cherry Valley, Yucaipa, Redlands, Mentone, Loma Linda and throughout South West Riverside County and The Pass Areas of The Inland Empire in Southern California. If you are a buyer, investor, first time home buyer or are just interested in REO real estate, please contact us at the above website or phone number.
This blog and the contents written here is the intellectual property of John Occhi, Hemet California REALTOR®. The views and opinions expressed are just that - views and opinions of John Occhi and those who comment. Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance. This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0. Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions. I am proud to be a full time REALTOR® with Century 21 Crest and the CrestREO Division who is proud to be a contributing member of the ActiveRain community.