The Frenetic Housing Market!

"Register now for new releases", the sign reads. “Coming soon”, says another. ... Great anticipation and warmer weather are fueling the house buying frenzy, inspiring us to act now! 

A new housing development is being built in an area that, for years, had remained dormant for development. Now, with a new highway-404- extension completed and sewers in place, the area is abuzz with newly discovered energy, the result of this unexpected housing boom. Population growth will follow. We had moved out of the area decades ago. Soon after, house prices began their slow ascent. Real estate is now a hot topic. This is the place to be. The buying frenzy, of yore, is now again rearing its ugly face, everywhere we go. Now it is in a newer community that has waited for the highway extension to be completed. ...

Today's techno world has helped perpetuate the myth of the 'buy now or lose out' mentality for the house buying public. . We hear about it. We read about it. We see its visual roadside reminders: "Current phase is sold-out, new release coming", soon! We are made perpetually aware. ... Pent-up demand keeps us on the edge. The thrill of home ownership is an ever recurring theme and dream, in our lives, as we hope to save as much as we can for a little piece of country. ... In this northern community, anything goes, it now seems. New housing starts began at the 'low' end of $300,000, last year. The year before, it was the low $200,000's. Registering now is our only hope in staking our claim in the current hot real estate market. This ever- recurring theme makes fools out of us.The developers and agents begin their media spin. 'Hot' moves us to buy and sell our soul simply to get our foot in the door. The message is clear: we are doomed if we fail to exercise our democratic freedom, ASAP. We are reminded of the urgency of home ownership. Some of us 'buy' into that stale, overused mantra, like we are doomed to squander our lives if we do not act now. Anxiety feeds the rush to buy. We are imprisoned by its words. Then the banks step in and the financial rules of lending bring us to a halt. The interest rate rises, helping to stem the tide of our frenzied buying habit. House sales begin their slow decline. We are reminded to 'chill out'.

If we miss out on a sale, on anything, let it be. There will always be another opportunity, a better, newer product, to consider, certainly a better price than the inflated one now being advertised. Then we have the biggest equalizer of all in real estate - price correction. Prices drop because they must. The market can only exist if there are buyers willing and able to pay exorbitant house prices. (At some point, the bubble will burst. It always has.) ... Paying more than something is worth is akin to giving away hard-earned - (after-tax) - money to a stranger, with absolutely no conditions attached, whatsoever! None of that makes sense. What about our children's future? ...Then we engage in the hedonistic practice of a bidding war, in a game of auctioning off the house to the highest bidder, without conditions, a house inspection or reason! We must learn to walk away.

(What is a house? We are buying bundles of studs, sheets of drywall, flooring, windows, doors, staircases, locked into position with nails and screws. These formed 'boxes' are interconnected, with air encapsulated within these leveled posts, walls and ceilings, all meticulously crafted by teams of professionals.) ... Bidding wars help only one person. It is never the buyer! Try and sell your over-priced house later and see what happens. We must learn self control and let it go! Dream another day.

The newest housing development, further south, began advertising detached and town homes, in the low $500,000 price tag! ... Now, the sign reads $600,000! How did that happen? Had a bidding war occurred without the buyer's knowledge, under the guise of increased costs to the builder? Once upon a time, the house was a place to live, not a lottery win or a quick investment. Families would live together for many years, while saving for the down payment, buy, move into their own place then start the trend all over again with their own children. Housing was never meant to be a short-term investment. If our parents could, the house was paid off as quickly as possible. Money was respected and dining out was a special treat not a weekly routine. Though hourly wages were low or not much more, in those times, housing costs were a manageable part of the family budget. Today, who can keep up with it all?

Now we have cottage owners beginning to feel the pinch of living in their special piece of heaven. They are bemoaning the fact that new assessments on family lakefront properties have finally caught up to their dwellings current appraisal. Property taxes are out of sight, for some! ... Affordable living in cottage country is now losing its luster, becoming a burden for some owners. In some areas, living in a rural setting has slowly caught up with the costs of living in the city. Complaining about the taxes is an out of context event that does not imbue pity. Let us look at the whole picture, not just one aspect of it. The country dwelling, near water, is now worth more than ever imagined. Property taxes can become a real threat to owning a cottage today. But the solution is simple. Sell and realize the dream of a lifetime: the dollar bonanza that will result. For the rest of us, owning a home, one at a time, is all we can ever hope for.

Today's house prices are ridiculous, in many areas, and rising quickly. Saving for a down payment needs to begin when we are young. Spending 100% discretionary income when no such thing exists in the real world is to develop a very bad habit, hard to break later when we finally smarten up. Our future needs to be protected. The unending purchases of DVD's, clothing, dining out will not lead us to financial security. There is no money tree. With part-time jobs a reality for many people and teens, long term, and house prices rising faster than anyone could have ever imagined, saving for the future must start now.

Giving in to the hyped up 'hysteria' of buying a house, ready or not, only fuels the increase of the selling price. We need to do what is right. Sometimes, it is simply to walk away! ... What is wrong with that?