The Real Story…
News and commentary about the real estate market and related topics.
Dave Parrish, ABR ®, CSP, GRI, ePRO ®, REALTOR ®, RE/MAX MarketPlace
The opinions expressed here are my own and don’t necessarily represent those of RE/MAX International.
It’s a Changed World…
One of the things I most enjoy about my profession is the opportunity to talk with a wide variety of people about their dreams, troubles/concerns and aspirations. It not only gives me an opportunity to serve and help my neighbors but also the opportunity to learn about what’s going on in the world and where things might well be headed.
While everyone’s story is different, patterns of changed attitudes and expectations emerge that are very revealing about the future direction of many things. Take for example the term “Bigger and Better!” The mantra of the masses but a decade ago has clearly been rejected for “smaller, faster, cheaper, better.” This is a movement of light years at warp speed!
While many are holding their breath waiting for a return to the “era of excess” or even to something that feels normal, the truth is the world has changed! It may not be the change we wanted… but pining for what was is not a useful survival technique. In this faster world, it is in your best interests to accept the fact that the world has changed, understand the change and learn how to survive if not prosper in that changed world.
So how has the world changed and how should you respond?
First, I suggest you began listening very carefully for the number of times you hear the following words: Smaller, Simpler, Simplify, Sustainable, Downsize… These words describe the direction and the tone of the changed world! The day of the McMansion has passed… If you own one, now is the time to act because the market for it is clearly shrinking. If you can sell and breakeven let alone salvage some of your equity you are among the lucky!
Holding out for the return of the market will prove to be a big mistake.
So where is the market headed? The under 35 market (the Millennials) is clearly trending away from large suburban homes toward more urban and modest homes… and the upper age limit for this trend is clearly moving up! As a matter of fact an increasing number of Baby Boomers are trending in the same direction!
Secondly, understand that today’s interest rates are an anomaly! If you are intending to stay put in your larger home as your final home, content with the rising cost to maintain and operate that home… by all means make sure that your home is either paid for or in a permanent mortgage arrangement at these record low interest rates. By all means exit an ARM (Adjustable Rate Mortgage), as quickly as you can.
Finally, don’t procrastinate… That’s one thing that hasn’t changed!
May the market be with you.
