Listing Courtesy of JACK LINGO REHOBOTH
Looked at from one perspective, there has been a “bailout” of enormous magnitude. Okay—maybe you have to expand the meaning of “bailout” just a bit, but if you do, many Dewey Beach homeowners can be counted among the most prominent beneficiaries. We Dewey Beach real estate agents wouldn’t be complaining, either. As bailouts go, it’s the least controversial in a long time—probably because there are no politicians involved (so they aren’t quarreling about who’s responsible for what).
The colloquial term “bailout” has become a household word of late. “Bailout” comes from a straightforward nautical solution for a sinking ship: grab a bucket and bail as fast as you can. The odds of success increase if you can also stop more water from pouring in. Wikipedia’s definition is “providing financial support to a company or country which faces serious financial difficulty.”
It’s no exaggeration to say that after the last decade’s financial meltdown had driven residential real estate prices into the basement, many Dewey Beach homeowners faced, if not actual “financial difficulty,” at least the threat that it might be on the way. If the amount outstanding on their mortgage was greater than their home’s market value, they were said to be “upside down.” Since bailing and buckets don’t have much effect on a boat that’s upside down, perhaps that’s why another term gained prominence.
They were “underwater.”
The coincidence of maritime imagery couldn’t be more apt. During the underwater days, if you were a Dewey Beach homeowner wanting to sell or refinance, more likely than not the outcome left you feeling swamped. The banks were inundated with foreclosed properties. The market was flooded with bank auctions. Property values sank…
But finally, rays of sunshine broke through the storm clouds. The floodwaters receded, etc. etc. etc., until today, when CoreLogic has just come up with some buoyant metrics about the current unambiguous state of the nationwide turnaround. A huge amount of equity has returned to the residential real estate market. The increase in homeowner equity in owner-occupied homes is now $6 trillion since mid-2011—$1.3 trillion in the last 12 months alone!
If that is a type of bailout, it’s one accomplished through the free market, powered by consumers reversing the previous distortion. CoreLogic’s figures include the good news that 92% of homeowners no longer bear the burden of being “underwater.” A relatively short while ago, among those who didn’t own their homes outright, that designation tainted nearly a quarter of the nation’s homeowners.
For several years now, the return of high and dry Dewey Beach homeowner equity has meant a more stable and blessedly predictable marketplace. Right now, some excellent property offerings—not to mention historically low mortgage interest rates—make this a propitious moment to call me to take a look at all that’s available! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.
For Sussex County homeowners, the news was a long time coming. The bounce back from last decade’s dizzying plummet in the nation’s residential housing values has been underway for quite a while now—but those values hadn’t quite returned to their former heights.
Until last month!
The Wall Street Journal was early to break the long-awaited headline, “Existing-Home Prices Hit Record: $236,400.” Using just-released June sales numbers, the Journal reported that the nation’s average housing prices now topped the previous high water mark set in 2006. It meant that a lot of paper losses have been obliterated—and the return of full nights’ sleep for many U.S. homeowners who have long been underwater.
Another aspect of June’s housing report card could also ease nerves on a wider scale. USA Today led with it: “Existing homes were sold at the fastest pace in eight years…” It quoted the NAR’s Lawrence Yun as pronouncing this year’s spring buying season “the strongest since the economic turndown.”
That’s where the current housing market profile seems to differ in kind from the previous peak of $230,400, registered in July 2006. That mark was reached after sales volume had started to fall. Prices then followed, starting with a slow decline that continued until the spring of 2008, when the slump became a nosedive—unleashing the subprime mortgage crisis. The “bubble” of unsupported high prices had burst.
There was more glad tidings in last week’s news, as well. U.S. home builder confidence levels hit its highest mark in “nearly a decade” (WSJ). A rise in demand for apartment housing caused a jump of 9.8% in housing starts.
But the biggest news was the existing-home price rise, reported as having “rocketed” 35% since 2011, “benefiting current homeowners by giving them an opportunity to trade up to better homes or sell and cash out.” That’s the kind of spur that can stimulate the entire housing market.
With one economist (Andrew Hunter of Capital Economics) quoted as saying “the housing recovery has shifted into a higher gear,” it wasn’t surprising that other analysts were in agreement. “Don’t Laugh” read one headline from international observer Quartz.com; “the U.S. housing market is the best story in the global economy right now.” Reuters agreed about the implications. Their headline: “Strong U.S. housing data boosts dollar.”
Sussex County residents don’t have to be global investors to take advantage of this summer’s values. A simple call to my office is all it takes to get things started! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.