Is There A Housing Crisis Going On????

By
Real Estate Agent with DFW FINE PROPERTIES 0506509

There are a lot of words printed in popular articles in Bloomberg, Washington Post, Morningstar, CNN, NBC News, Reuters, Wall Street Journal, and others that makes people nervous about "The Bubble, Recession, and Inflation." Is the Bubble on the verge of a big burst? Are we in a recession? What does inflation do to the housing market?

 

If there was a true and accurate crystal ball, would we know what to do and how to prepare or prevent the evitable? How well do predictions work and can anyone really do anything to stop a crisis? First, breathe! Be a critical thinker. Stop listening to what everyone else is saying. Panic does not solve anything. Education is valuable but not all educators agree. The truth is, there is no "Wizard of Oz." The bottom line is the more you know, the easier you can make critical decisions. 

 

RECESSION does not mean the sky is falling and it does not equal a housing crisis. It is important for home buyers and homeowners to know that "A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between the trough and peak, the economy is an expansion."  

Source: The National Bureau of Economic Research (NBER)

 

INFLATION is nothing new. It is a decline in the value of money. Our government plays a crucial role in the economy by the decisions made at the top. When inflation rises, you notice it at the grocery stores, building supplies, quantity and quality of merchandise including anything for sale. When the rate of inflation rises and keeps rising inflation is at work for goods and services. If you notice every day that your money buys less that is inflation. 

 

PAY ATTENTION - stay alert. Read and get familiar with credible reports and resources but do not believe everything you hear. Now might be the perfect time to take a college course on economics, finances, or subjects pertaining to buying land, property, and investments. Timing is everything. They say knowledge is power - it really all depends on accuracy, being responsible, and making wise decisions. 

 

CONSUMER PRICE INDEX is just a standard measure of inflation. From January 2021 to January 2022, prices increased 7.5%. Is inflation a bad thing? Not necessarily. A little is good and healthy for the economy. 7.5% or more is something to worry about because that is HIGH!

 

LIMITS teaches us to be better consumers. A dollar can only stretch so far. Creative thinking goes a long way to get your needs met without crashing your budget. 

 

WAGES matter. Making household adjustments is not easy but is necessary. Recycling should be on everyone's mind.

Life is better when people depend more on themselves than on store bought items that one can make at home. Stimulating the brain is just as important as stimulating the economy. I look around and think to myself, do I want to contribute stimulating the economy in foreign countries or in stimulating my brain? Living in a world that is more affordable for others or for me is something I consider carefully. 

 

REAL ESTATE is highly desirable and a proven hedge against inflation. The secret to wealth is in maintenance and keeping up with the payments for mortgage, insurance, property owner dues to an Association, and making timely payments while keeping your credit scores high. The question every renter should ask is, do I want to make my property owner wealthy or me?

 

HISTORY repeats itself but not always the same. For example, between 1980 and 2020 during the last great recessions documented, the years 1991 and 2008 were the worst. What happened and will continue to happen between 2021 and future years is unknown. Looking at historical data is interesting, but many people go on from day to day unaffected by a recession or what is deemed a "Housing Crisis." Also, important to know is that many people who lost their homes in and around 2008 bounced back. Many have pulled themselves up by the bootstraps and are now living in new homes. Check out the QR code. Source: CoreLogic, The Balance and see that in 1980, there was a 6.1% appreciation, 1981 3.5% appreciation, 2001 6.6% appreciation, and 2020 6.0% appreciation. During 1991 there was a negative -1.9% depreciation and in 2008 a negative -19.7% depreciation. 

 

 

WHAT MATTERS MOST NOW is who are you going to believe? Headline news or believing in yourself by getting on with living your best life ---Patricia Feager 

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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

                                        3575 Lone Star Circle, Suite 315
                                        Fort Worth, TX 76117
                                        Office: 817-748-4800/FAX: 817--748-4900

                                         Patricia (Peace without Panic) Feager (Faith without Fear)
                                                        Cell: 469-951-4758

                                                        Email: patricia.feager@gmail.com

 

MBA (University of Dallas)
BA
(Bachelors of Arts & Science)
Paralegal (Southeastern Career Institute)
Associates (3) (College of Lake County)
KU (University of Kansas)

CERTIFICATIONS

CRS (Certified Residential Specialist)
SRES (Certified Senior Residential Specialist)
PSA (Certified Pricing Strategies; Mastering the CMA)
CRS (Certified Military Relocation Specialist)
RENE (Real Estte Negotitions Expert)

"With self-discipline most anything is possible." --- Theodore Roosevelt 

 

 

 

  

Comments (32)

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

Raymond Henson, eXp Realty - I am not looking for a crystal ball. But I did create this one in my photograph! We must stay abreast of the financial world but not live in fear or anger. Having a positive attitude goes a long way to put others at ease. Life does not come with financial guarantees. 

May 21, 2022 12:54 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Oh, Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets - I wish I could give you a GOLD star and a FEATURE for your comment. You see things so clearly and have a way of knowing a lot about the financial world. I am very thankful you shared your experiences from Cali and I am grateful for the compliment you gave me too. 

May 21, 2022 12:57 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Kristin Johnston - REALTOR® - thanks for popping over to my blog post. It was good to hear from you! I hope spring has finally come to stay in Waukesha!

May 21, 2022 12:58 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Nina Hollander, Broker - your life experiences and understanding about the financial world with all its ups and downs, highs and lows, worries and woes does not scare you. You're not addicted to news stories and you know propaganda when you see and hear it. You are absolutely correct about the rational behind selling headline news and the outcomes to unsuspecting and vulnerable people. Recession, inflation, and talk about a housing crises are old news stories that keeps circulating through the ages. Citizens can vote, but they don't control what goes on in D.C.

May 21, 2022 01:04 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Will Hamm - you're welcome! Thank you for your support over the years. I wish you all the best. Thank  you for being a good soul. 

May 21, 2022 01:06 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Patricia I was not a Loan Originator in 1980 or 1991, but I was in 2008 and it is a big mistake for anyone to compare today's housing market to 2008.  The 2008 housing market had far more things going against it than the market we are in today, and the crisis in 2008 was not a lack of inventory like we have today.

May 21, 2022 01:20 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

George Souto - I was not a Real Estate Agent in 1980, but I did buy my first home in July 1979 with a VA Loan, 10.5% interest rate. To be honest, I was oblivious to the housing market at that time because my main focus was on raising my young children who were born in the 1970's. I vividly remember the gas shortage, standing in line waiting and hoping to buy gas. Those were the worst times. By 1991 I was already an established widow raising children without a father and no financial support from the government or anyone else. For me, it was not an expectation. My focus was on getting by and not feeling sorry for myself. I wanted my kids to have the best that I could provide. My focus was on our health and safety, not what the housing marketing was in or whether or not there was inflation. I kept the mortgage going until I moved to Texas and sold the house in March 1997. 

By 2008 I was already a REALTOR whose sales did not soar until there was a housing crises and I was selling more short sales than I ever dreamed possible. 2008 - 2010 were my very best years. My heart was in the right place to give compassion to those in need and get their homes sold without being repossessed by the banks. In doing so, I felt my sellers hearts and for most, we remained friends. 

George your answer was spot on and relevant. Thank you!

May 21, 2022 01:36 PM
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Thanks for sharing Patricia!!! Great information about recession!!!

"A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between the trough and peak, the economy is an expansion."  

May 21, 2022 01:38 PM
Patricia Feager, MBA, CRS, GRI,MRP

Sham Reddy CRS - it was good to hear from you again. 

May 30, 2022 04:49 AM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Patricia Feager, MBA, CRS, GRI,MRP I really hope history does not repeat itself think back to the last epidemic it led to the great depression not long after

May 21, 2022 04:58 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Hannah Williams - with all the money being printed off and going out faster than it can be printed, it puts everyone in jeopardy. We must think critically and be prepared to help ourselves. 

May 21, 2022 05:36 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Patricia loved your post and all the interaction, now with that said check out my post about Inflation and the comments:)Endre

May 21, 2022 11:53 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

I say get on with living your best life, as you said as you wrapped up this post! I hope you have a wonderful week!

May 23, 2022 05:12 AM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Good morning Patricia Feager, MBA, CRS, GRI,MRP, yes, indeed, there's a housing crisis. Low inventory of homes for sale with high demand. I can't tell you how many people I know who are waiting for the market to crash so they can purchase a home based on what they heard and read.

May 24, 2022 05:51 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Fantastic post Patricia! The media taints the truth, using a lot of sensationalistic spin to drive traffic to their articles for clicks. The government's reckless spending, open borders and making poor decisions factors into what is really happening. We are living life and meeting each and every day as it comes.

May 27, 2022 06:16 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Wanda Kubat-Nerdin - Wanda Can! - it was lovely to hear from you. Thank you for your comment. I agree with you 100%. People need to shut off the media with their lies. Inducing fear, especially to seniors who may only have the companionship of a T.V., they (the Media) are despicable!

May 30, 2022 03:44 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Beth Atalay - I know for sure you will remain busy as things shift. Panic doesn't get anyone far. Buying today (while feeling the pinch) will be much better than for those that wait and may find, they never can buy. 

May 30, 2022 04:17 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Kat Palmiotti - Waiting for the government to make the odds better is like believing in the Tooth Fairy when you are older and your teeth start falling out. Not only will you not get a new tooth, nobody will put money under your pillow either. 

Live your best life and listen to your heart!

May 30, 2022 04:19 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Endre Barath, Jr. - I am headed your way to find that post. 

May 30, 2022 04:19 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Endre Barath, Jr. - I tried to find the post you referred to but couldn't find it. When did AR make changes? I can only find four recent posts and could not find out how to access your older posts! I wish there was an announcement made when they make changes or you're too busy and skip for a bit. If you can walk me through how to turn back the pages of time on ActiveRain, it would be most appreciated. 

May 30, 2022 04:38 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Hannah Williams - God help us all if we face a Greater Depression than the one my mother suffered through What she lived through was hell on earth. 

May 30, 2022 04:41 AM