Would you advise your Aussie friends as to whether they're getting a good deal on the house they're buying in Sydney?  Would you want to make sure they were gobsmacked about the price you were paying for a house here in Harrisonburg?

What about New York City?  If your friend was buying a condo in Queens, would you weigh in on what she should pay?  And would you wait anxiously to hear back from her about how how you should price your duplex in Dayton?

How about Richmond?  If your mom lives in Glen Allen, will she get the final call on the price you pay for your new single family home in Harrisonburg? 

I'm sure you have intelligent Australian friends, well-read pals in Queens, and astute parents in other areas of Virginia -- but I challenge you to:

• Remember that this local real estate market (Harrisonburg and Rockingham County) is quite different than all of the aforementioned housing markets.  The glut of foreclosures in Richmond that is driving down prices doesn't drive them down in Harrisonburg.  The deals that home builders are giving away in Northern Virginia doesn't mean that a builder in Harrisonburg will be giving away those same deals.
     
  
• Become familiar enough with the local market to be comfortable making decisions in consultation with your Realtor.  I have seen far too many buyers lead astray by well intentioned parents who live out of town and think they are doing well by their kids to advise them about what they should do and how they should proceed in a real estate deal.

Again, I am sure you have very well intentioned, well informed friends and relatives all around Virginia, the United States, and perhaps the world.  But at some point, we'll need to focus in on the nuances of the Harrisonburg and Rockingham County housing market and make the best decision in a local context.

I am ready to spend as much time as needed with you to help you understand our local housing market and how such an understanding could and should guide your real estate decisions.  Are you ready?

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Buy A Home!  It is the American Dream!  But why, you might ask?  Well, here's a bit of the historical political context for the American Dream, per the National Association of Realtors:

• President Franklin Delano Roosevelt once said that a nation of homeowners is unconquerable. 
• Margaret Thatcher, with a mantra that homeowners become responsible citizens, privatized and moved 1.7 million families from public housing into private ownership. 
• President Bill Clinton has stated his belief that homeownership and decent housing are an essential part of the American Dream and wanted to make the dream of homeownership a reality for all Americans. 
• President George W. Bush has said ownership has the power to transform people.

It is probably safe to say that homeownership seems to be culturally important....but the last several years have left many wondering if the dream of homeownership is worthwhile to pursue.  Forbes had an interesting article two weeks ago about whether the American Dream of homeownership is dead.  They hypothesize that it is not dead, and base some of their findings on Trulia's recent research showing that 70% of Americans view homeownership as a part of their personal American Dream.

But despite the fact that America has prioritized homeownership for decades, and most Americans strive to own a home, it seems that structural changes might be on their way that seem likely to decrease the ability of Americans to fulfill the American Dream.

As reported by WHSV earlier this week, "The Obama administration released a report to Congress last week outlining what it wants to do to reform the housing finance market.  Some of the proposals include larger down payments, increased fees and possibly ending 30-year mortgages."

As summaryized in the Wall Street Journal, "The Obama administration outlined on Friday its plans to begin shrinking the government's broad support of the nation's crippled mortgage market, a process that officials said could take several years and would include phasing out Fannie Mae and Freddie Mac."  

What would the results be?  Again, confirming my hypothesis:


This entire train of thought leaves me with more questions than answers, but it seems that we may continue to see some significant transitions in the housing market in the next year years.

Stay tuned!
 

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