Housing ready to bloom?

By John McGory   

Spring is in the air.  The warm weather and sunny skies improve everyone’s mood.  Spring is also the time when people consider their housing options.  The Real Estate Swami says that it may be the best time in five years to buy or sell a house.

“Housing may be ready to bloom,” says the Swami.  “The economic outlook is much improved as reflected in strong retail sales of automobiles.  New car sales are the best they’ve been in four years.”

Job creation is also on the mend.  In the first two months of 2012, the economy added approximately 500,000 new jobs.  Swami says new jobs are the seeds for a housing recovery.

“New job creation begins the domino effect in housing.  This brings new people into the housing market creating positive momentum at the rental and starter-home segments.  The housing surge then cascades through the higher-end housing market over time,” remarked the Swami.

The glut of bank-owned homes is still a drag on the housing economy but it may begin to subside.  The Swami has seen a noticeable uptick in central Ohio houses going into contract.

“In my efforts to find housing for several clients, it is clear that existing home sales are improving.  Superior products that are priced right are going into contract within days.  This is a positive sign and could bring about the first substantial appreciation in home values in six years,” predicts the Swami.

If you are considering buying or selling a home in the near future, then Swami suggests to keep an eye on local house sales.

“How close to the listing price a house sells for is a good barometer for the housing health of neighborhoods,” says the Swami.   The days of deep discounts and a housing market severely tilted in favor of buyers may be coming to an end.”  

John McGory is a licensed Realtor and partner in Webface, a content marketing company.  If the swami can help you in either buying or selling a home, then please feel free to call at 614-581-3610 or send an email to jrmcgory@gmail.com.   We will be honored to assist you.

Home Building: A Shaky Future?

By John McGory

With the demise of the home building industry, a fundamental change in how we house people is facing our country.  The Real Estate Swami says the economic meltdown may usher in a new era in how we build and pay for housing in the U.S.

Sales of newly built homes, which peaked at 1.3 million units in 2005, are running at an annual rate of just 298,000 units in 2011 and are on pace to post the lowest count since record keeping began in 1963.  

Home building starts in central Ohio’s seven-county region totaled 600 through July 2011.  In the late 1990s, it was not uncommon to see 600 permits per month in the City of Columbus. 

 This staggering drop in new housing is chasing builders, large and small, out of business.  The Swami says that home building as we know it today may never return

“Central Ohio’s impressive home building industry is but a shell of what it once was,” remarked the Swami.  “In what form it returns when housing is needed is a question not yet answered.”

The Swami says the real estate meltdown shows where home ownership and the new economy have diverged.

He predicts the speed of the new economy will challenge home ownership and 30- or 40-year mortgages.  These challenges include:

1.   Worker skills necessary today may be useless tomorrow.

2.   Middle class jobs are disappearing.

3.   Companies flourish for a short period of time, then wither away. 

4.   Governments struggle to pay their bills and maintain necessary services.

“These are signs of a troubled day-to-day economy,” remarks the Swami.  “How can a home owner sign a 30-year mortgage under such uncertain circumstances?  How can communities afford services for suburban-styled development with this short-term economic mentality?”

The Swami foresees changes such as hybrid ownership/leasing arrangements, larger multi-family housing projects and the halt to sprawling development in rural areas.

“Significant changes in society took place during the last Great Depression.  How we live amongst one another will be one of the major changes we face as this economic malaise slowly comes to an end,” says the Swami.

The Real Estate Swami is brought to you by Web Face, a Columbus communications and marketing company (www.web-face-solutions.com)

Are You Afraid?

Sri Swami Sivananda writes in the Conquest of Fear that “Fear is illusionary; it cannot live.  Courage is eternal, it will not die.”

Today’s world of real estate is full of fear. 

Banks call themselves lending institutions, but they fear the lending of money and simply buy Treasury notes. 

Buyers are negative about the future and fear that the economy will not recover.  They sit on the sidelines and stew.

Government fears the collapse of real estate values, so it collects money from its citizens through punitive penalties and fines and claims it is not taxing people.

Owners of homes and businesses fear they are trapped and will not see the fruits of their labor of love.

The Real Estate Swami reminds all that good things come from love.  And what is love but enthusiasm, excitement and peace in your heart.  Those caught up in real estate fear need to meditate on what brings love into their hearts.

Bankers, buyers, governments and owners are all following their false egos.  They fail to envision a world of love so they remain paralyzed with fear.  Our real estate economy will not move forward until each of these entities pushes aside what they fear and pursues what they love instead.  Our world is more beautiful when just one person’s love expands and spreads to every living being.

Sri Swami Sivananda writes:  “Just as a rock on the seashore stands firm and the dashing of the waves does not affect it even a bit, even so a man who is endowed with courage is not affected by the dark perilous waves…He stands adamant in all trying conditions and circumstances and comes out victorious.”

Courage is what we need today in the real estate market.  The waves are crashing upon us.  Courage and an unshakable belief in what we do will conquer fear and false egos and bring us the peace and love we all want.

The Real Estate Swami is brought to you by Web Face, www.web-face-solutions.com

Wal-Mart, Westerville and Mass-Produced Urban Life

The Real Estate Swami sees turbulent days ahead for communities as Wal-Mart and other big box retailers move into urban neighborhoods.  Swami’s crystal ball shows many small business owners closing their shop doors in the coming years as a result.

The City of Westerville, Ohio, recently approved the building of a Wal-Mart in an urban neighborhood populated by many small shops.  This is an example of Wal-Mart’s plan to target urban areas since they have saturated the rural landscape.

A 2009 study* by the Center for Urban Research and Learning at Loyola University-Chicago highlighted the impact that urban Wal-Marts have on surrounding businesses.  The study of a Chicago neighborhood showed 82 of 306 area businesses closed their doors within two years of Wal-Mart’s opening.

“The beauty of the recent moon will not hide the pain and suffering many small business and building owners will feel in the coming days.  The vision of jobs, neighborhood vitality and the sense of community will vanish as a new reality sets upon urban neighborhoods,” reveals the Swami.

The Loyola University study shows that the probability of stores closing due to a new urban Wal-Mart falls off 6 percent per mile in all directions.  The types of establishments in danger include electronics, toys, office supplies, hardware, home furnishings and drugs. The report also shows area sales, jobs and taxes as flat or declining.

“The balance of local community is a delicate one,” the Swami says.  “Many desires and needs swirl within our collective spirit to form one face.  Let us meditate on the knowledge that change is constant. The community’s eyes and heart must be open to where the road ahead is leading.”

The Real Estate Swami is a service provided by Web Face, a communications and marketing company.  To find out more about Web Face go to www.web-face-solutions.com

*Davis, J., Merriman, D., Samayoa, L., Flanagan, B., Baiman, R., & Persky, J. (2009). The Impact of an Urban Wal-Mart Store on Area Businesses: An Evaluation of One Chicago Neighborhood's Experience. Chicago: Center for Urban Research and Learning, Loyola University-Chicago.