All we hear from news sources these days is the horrible condition of the housing market. They’re not wrong. The number of homes sold so far this year is acres behind 2010 and likely to arrive at 2009 levels.
Because of this, I find the need to balance all the negativity with positive insights. I recently wrote that for Louisville renters, now is an amazing time to purchase their first home because of the historically low interest rates. I’ve also highlighted the fact that Louisville’s home values have trounced the national average. I thought I had covered all the positive topics until I read an article today.
Tara-Nicholle Nelson writes for Inman which covers real estate on a national level. Her story, 5 bright spots in real estate recession, caught my eye and I thought that she would hit the same points I’ve been making here and on InsiderLouisville.com. Boy, was I wrong.
In her thoughtful piece, Nelson identified some of the less obvious but likely more powerful results of our suffering housing market. I do recommend you read the entire article but here are her five points.
- People now buy for the long term.
- Dysfunctional properties are being weeded out and creatively reused.
- American housing stock is getting an energy-efficient upgrade.
- People are making more responsible mortgage decisions, and building financial good habits in the process.
- Our feelings about debt and equity have been reformed.
The negative financial effects of this recession are creating healthier mental outlooks, especially as it pertains to selecting and purchasing their next home.
There was a time when the debt was considered evil. During the growth decades of the ’80s and ’90s, that concept was put on its ear. Now, people are realizing the Biblical proverb that the debtor is slave to the lender is true! Almost 3,000,000 foreclosures in 2010 alone.
Going forward, people are already buying smaller homes, contributing a larger down payment, and choosing smarter components. That’s progress!
If you say my glass is half full, you’d be right.