Are We In the Housing Bubble or Blight?

By
Real Estate Agent with DFW FINE PROPERTIES 0506509

To piggyback off of Endre Barath, Jr. blog post "Are we in a 'housing bubble'? I have been asked by many platforms..." (follow link to read Endre's blog post), I have written my post for you to think about the question from a different perspective. The answer to many questions is - it depends.

 

Understanding Economic Blight

According to The Investopedia Team, written on January 6, 2021, "Economic blight is the visible and physical decline of a property, neighborhood, or city due to a combination of economic stagnation, population decline with residents..." All one has to do is look at what has happened to some of the most beautiful cities in America as a result of rioting, protesting, murder, destruction of property, graffiti, violence, homelessness, drugs, broken glass, fires, and boarded up buildings. For the most part, there are no consequences for guilty parties. When it comes to property values and appraisals, everyone pays the price. Blight is "usually associated with structural change in the economy." When there are jobs and people choose not to work, Houston, we have a problem

 

Whether you agree or not, names of heroes and saints that have been torn down would cry out loud... if they only could. The Media shows the mushroom cloud of smoke rising out of the ashes from ammunition. Once upon a time (not so long ago) business owners had wonderful dreams. Many who built their business were legal immigrants who came from war torn countries to America, because freedom, liberty, and the American Dream was possible. I can still hear the echoes; I have a dream. 

 

There was a time when students from all walks of life seemed to enjoy hiding behind sunglasses at the beach and dreamed of becoming doctors, lawyers, athletes, husbands and wives, teachers, architects, graphic computer designers, police officers, first responders, etc. Over many decades, a million or more students left their footprints in the sand.  One such young man did become the President of the United States. Clearly, the voters were not divided. Now it seems dreams are blowing up in people's faces and pages of history are being rewritten. Why? 

 

Bubble or blight? It is difficult to see our new surroundings from a whole new perspective. And it's very confusing too. Blight is serious, it's toxic and infectious in the most egregious way to our land, the people, future generations because it does not follow the American way. Blight isn't something that just happens, like acne as a result of puberty, it creates slums, more homelessness, druggies, violence and depreciation on property values. Government grants, stimulus checks, and federal aid is not the answer. It's nearly midnight now as I complete this writing. The sky is filled with a million stars shining brightly not just on some this evening but on people everywhere because we really are connected in this universe. We don't need a bubble or blight. We need to represent the united people of the United States of America with a healthy body, mind, and soul.

 

Photo by pexels-pixabay-263479

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Texas Law requires all license holders to provide the Information about Brokerage Services form to prospective clients.

https://www.trec.texas.gov/sites/default/files/pdf-forms/CN%201-4-1.pdf

 

 dfw fine properties

 

DFW FINE PROPERTIES

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                                         Patricia (Peace without Panic) Feager (Faith without Fear)
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MBA (University of Dallas)
BA
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Paralegal (Southeastern Career Institute)
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KU (University of Kansas)

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Comments (35)

Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

George Souto - Oh, I think there is a lot of things going on behind the scenes, just like when we lived in lockdown. When areas are determined to be blighted, they become eligible for the creation of a Tax Increment Financing District. Funding becomes available using tax dollars to support private or public development that has been in the planning. 

Jul 30, 2021 05:33 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Buzz Mackintosh - Now is the time to be awake, smell the coffee, pay attention to what is going on because the seeds of tomorrow are being sowed and spread long, deep, and wide. Social upheaval and change didn't just happen overnight. 

Jul 30, 2021 05:35 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Kathleen Daniels, Probate & Trust Specialist - the stories, media, videos, and tall tales created nothing beautiful or peaceful and those images are now sketched permanently into a spooky neverland nobody ever thought was possible - no, not in America. Lives have been shattered.

Jul 30, 2021 05:41 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

John Meussner - I would love to hear more about what insights you have regarding solutions. The infestation that has been caused by the damage isn't going away unnoticed. This topic isn't just about people in the real estate business. It involves everyone, every type of business, homeowner, mom and pop shops, school children, etc. At least when kids played Rover, Red Rover, let so & so come over, kids knew what they were doing. But we are talking about patriotic adults and seniors on one side versus politicians and big pharma. Sadly, it's the little kids that are now the monkey in the middle. John, please share Write on!!!!

Jul 30, 2021 05:48 PM
John Meussner

I try to keep politics off here as much as I can.  I believe a system that promotes personal accountability and assistance only to those who have no means to help themselves is the answer.  Unfortunately, we live in a world where an iphone is a "right", and our leaders put votes ahead of what's right.  Rather than pushing for change, what was the middle and upper middle class are sitting back in comfort enjoying their tiny piece of the pie.  Our country is in a sad state of affairs.

Aug 02, 2021 10:42 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Jeffrey DiMuria 321.223.6253 Waves Realty - Yes! we are falling fast into the deep, dark, 'dead wood,' just like in Dante's Divine Comedy. This is no joking matter. We have to get rid of it and all propaganda. 

Jul 30, 2021 05:57 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Norma J. Elkins - Live with integrity and do your job but stay alert! The walls are closing in fast. Seriously, I am not a pessimist. Remember how painful it was when homeowners were upside down, the number of short sales and foreclosures? 

Jul 30, 2021 06:00 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Ron and Alexandra Seigel - Michael Jacobs  - Nina Hollander, Broker - Brian England 

Happy Friday to you too. 

Jul 30, 2021 06:10 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Why blight matters and Food for Thought:

Unoccupied buildings (boarded up or not) is an invitation for rape, drugs, hide-outs for criminals, rat and insect infestation, disease, urination, health issues, mold, unsanitary conditions, illegal activities, etc. 

 

Appraisers report location and conditions in close proximity to subject property under consideration for purchase. In areas I am familiar with in Chicago, it's a fact, when blight occurs, home insurance is dropped. If that happens, homeowners have to assume liability. Substandard conditions in close proximity can kill a deal as quick as a sneeze. Blight is nothing to sneeze at. 

 

Jul 30, 2021 06:23 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

When economic landscape shifts, it can be disturbing to witness.  I do have concerns we may be in a housing bubble.  Ironically, it is likely fueled partly by low interest rates.  Add to it the fact we have a supply line issue currently, that has aided in raising cost of building matterials into the stratosphere.  This is keeping new home construction at bay, which would help with the shortage of housing inventory on the market.  I do suspect by year's end, things may improve.  But, much depends on whether folks have the will to reach down inside themselves to do the right thing in helping curtail this pandemic. . .Or, will we continue to act as rebelious teenagers, who never grew up, and prologue our agony?

Jul 30, 2021 07:49 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Myrl Jeffcoat - When the landscape shifts agents need to be prepared. There has been a lot of talk here too about the bubble and a lot of denials too. Every reason you gave is valid and your years of experience in this business sharpens your radar skills more than those who are new to this business or hasn't experienced it before. This market we are in, is in my opinion not here for the long haul. Wishful thinking doesn't help when the rug gets pulled out from under your feet. This morning I was at a pre-construction meeting with my buyers. The builder said the latest challenge he's facing now is paint - they are in short supply on paint at Sherwin-Williams. Right now, nothing is predictable, is it? We can't make promises; neither can builders or contractors. As always, I love to hear from you to get your perspective on topics like this that are so important. 

Jul 30, 2021 08:11 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I agree that there's always gonna be an opportunity at any point. Here's to the hope that those days are ahead. :

Jul 30, 2021 09:13 PM
Patricia Feager, MBA, CRS, GRI,MRP

Laura Cerrano  - always opportunities... I like that!

Jul 31, 2021 06:01 AM
Edward Gilmartin
CRE - Boston, MA

We are definitely in a bubble in much of America. Low interest rates plus pandemic and temporary shortage of housing has led to this. Inflation will mean 5.5% mortgages in two years cooling off things.

Jul 31, 2021 04:06 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Edward Gilmartin - Thanks for reporting back what's going on from your perspective. If interest rates goes up to about 5.5% mortgages in a few years, that's still manageable for many buyers as it was in 2003 and much better than it was in the late 70s and 80s! With high rentals, buying a home is often the best option for those who are qualified to buy. 

Jul 31, 2021 06:00 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

The world "I" live in is not filled with blight, it is not filled with hate and it is not filled with division.  My little rural town has continued to make capital improvments even during the height of the pandemic, all religions came together to stand (socially distanced) outside the hospital to pray daily for those inside... the sick, and those caring for the sick,  when there was no school the school buses drove house to house to deliver kids lunches with volunteers taking a hot meal from the coolers to the door at every child's home.  I am beyond thankful that God to chose to give me to parents who lived in this little town.  Whatever happens in the market I will continue to face with optimism and a smile on my face as I help people navigate the waters of the market.

Yesterday I had a great closing where a seller probably walked away with about a 60% profit gain and I celebrated with him, I also had a contract fall out and I planned with him of the things to get done to prevent the next one from falling out, both with optimism and joy. 

No room from blight in my world.

Jul 31, 2021 09:06 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Tammy Lankford, - your world sounds united and beautiful! To be clear, blight is not my world either. Unfortunately, in major cities in Portland, OR, Minnesota, Chicago that have been spotlighted on the news covering rioting, etc., for over a year now are experiencing blight. Blight does impact appraisals and taxes. 

Jul 31, 2021 10:07 AM
Ken Jones
Kenneth J. Jones, Inc. - Toms River, NJ

Patricia Feager, MBA, CRS, GRI,MRP I must say, I'm quite proud of you for having written this well-thought-out piece. And, frankly, I'm quite pleased that it's a Featured post.

These are very dangerous times. And, we mustn't stick our head in the sand and either pretend it's not happening or expect it to fad away on its own.

We are going to have to take significant aggressive action and make very substantial sacrifices to overcome the problems we now face if we want our former way of life to return and survive.

Thank you for writing this article. I look forward to seeing more like it.

Jul 31, 2021 11:44 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

That's why I still live in small town America.  I have enjoyed previously visiting cities and have been to lots, but right now I would not.  But I've discovered I can't change what others think and I'm happier for it that I've stopped trying.  I don't know that I'll ever set foot in a city again.  Might just pass through and stop in the next small town.

Jul 31, 2021 01:16 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Ken Jones - Thank you, so much for your feedback. Now is not the time for anyone to turn a blind eye to what's happening to our nation. Using Chicago, Portland, or San Francisco for example, lack of community planning for building use and infrastructure is not debatable. Tent cities with homeless dwellers doesn't add to increased property values or safety within communities. Boarded up vacant buildings and crime without consequences from local government or the highest lawmakers in the land is not acceptable. Blight cities don't sell real estate which stimulates the economy. Rioting, graffiti, delinquent taxes, abandoned buildings, obsolescence, and mismanaged city governments is an embarrassment. 

Jul 31, 2021 03:28 PM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information.  Thanks for sharing and have a wonderful day!

Aug 01, 2021 07:57 AM
Patricia Feager, MBA, CRS, GRI,MRP

Kristin Johnston - REALTOR® - Thanks!

Aug 02, 2021 03:39 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Tammy Lankford, your little town sounds ideal. I wish you and your community all the best. You have invested many years selling real estate in your area and it has paid off. 

Aug 02, 2021 03:39 AM