Is owning a home still the American dream?


DAGEN: REAL ESTATE IN FOCUS, LOW MORTGAGE AND UNEMPLOYMENT RATES SHOULD BE THE FARM LA FOR A THRIVE — FORMULA FOR A THRIVING HOUSING MARKET. THE ON T SIT IS ACTUALLY HAPPENING. MANY AMERICANS ARE HAVING A HARD TIME BUYING A HOME. JOINING ME RIGHT NOW IS REAL ESTATE OWNER ROGERS HEELY. WHAT IS HAPPENING HERE, ROGER?>>WELL, I MEAN, FIRST OF ALL, IT’S NOT HAVING A NEGATIVE EFFECT ON THE REAL ESTATE MARKET. IT’S GOT PEOPLE TALKING AGAIN. SOMETHING THAT PEOPLE DON’T MENTION IS THE TIME OF YEAR THEY GO AND DECREASE RATES. OBVIOUSLY, THE JOB MARKET IS CONTINUING TO THRIVE. PEOPLE ARE STILL REALLY HAPPY IN AMERICA. BUT THE WAGES HAVE NOT CAUGHT UP YET WITH THE PRICES OF THESE PROPERTIES AND ON TOP OF THAT, SOMETHING THAT NEVER GETS MENTIONED ARE THE CYCLES OF LEASES. PEOPLE NORMALLY RENEW LEASES IN MARCH, APRIL, MAY AND JUNE. SO IF RATES ARE LOWERED IN AUGUST OR LATE JULY, THEY’VE KIND OF MISSED THE BOAT. SO IT’S NOT NECESSARILY A BAD THING. IT GETS PEOPLE TALKING. BUT A QUARTER POINT DIP IS NOT GOING TO CHANGE THE REAL ESTATE MARKET AND GET EVERYBODY OFF THE COUCH AND READY TO MAKE A MOVE.>>GOOD MORNING, MITCH ROCHELL. WE OBSERVED THAT IT SEEMS LIKE THE I WANT TO RENT VERSUS BUY IS SOMEWHAT SECULAR AS OPPOSED TO CYCLICAL. WHAT YOU WERE TALKING ABOUT SEEMS CYCLICAL. SEEMS AS THOUGH IT’S SECULAR, WE JUST DON’T WANT TO OWN A HOME, WE’RE HAPPY TO RENT. IS THAT SOMETHING YOU’RE OBSERVING AS WELL?>>IT’S STILL THE AMERICAN DREAM. SOMETHING I STARTED TALKING ABOUT A COUPLE YEARS AGO, THE RULE OF REAL ESTATE USED TO BE LOCATION. THAT’S WHAT USED TO BE EVERYBODY WANTED, THEY WANTED TO BE IN THE URBAN CORE. NOW IT’S SHIFTED TO AFFORDABILITY. YOU SEE PLACES ON THE OUTSKIRTS, THREE OR FOUR LAYERS AWAY, THOSE PLACES HAVE THRIVED, ESPECIALLY RIGHT NOW WITH INTEREST RATES. PEOPLE DON’T WANT TO RENT. THERE ARE STATISTICS THAT SAY PEOPLE ARE RENEWING LEASES MORE THAN THEY EVER HAVE BEFORE WHICH MEANS THEY’RE NOT POPPING TO ANOTHER RENTAL, MAYBE THEY’LL STAY LOCKED IN AND SAVE MONEY. I THINK EVERYBODY WANTS TO OWN THEIR OWN PROPERTY. COMMERCIAL REAL ESTATE AS WELL. BUT IT’S STILL TOUGH RIGHT NOW TO SAVE MONEY WITH THE COST OF REAL ESTATE BEING SO HIGH. DAGEN: LEE?>>ROGERS, I HAVE A QUESTION. DO YOU THINK ANY OF THE SLOWDOWN IN REAL ESTATE HAS TO DO WITH PEOPLE’S INABILITY TO WRITE OFF TAXES THE SAME WAY THEY USED TO.>>AGAIN, THE SLOWDOWN, IT’S LATE SUMMER. AND THIS ALWAYS HAPPENS IN LATE SUMMER, THIS HAPPENS IN MID-WINTER. PEOPLE RIGHT NOW ARE FOCUSING ON PREPARING FOR THEIR TAXES, PREPARING FOR KIDS TO GO BACK TO SCHOOL. THEY SPENT A LOT OF MONEY ON SUMMER VACATIONS. JULY IS PROBABLY THE BUSIEST MONTH OF THE YEAR FOR PEOPLE GETTING OUT OF TOWN FOR MORE THAN SEVEN OR 10 DAYS. THIS IS A CONVERSATION WE HAVE EVERY YEAR. AT THE END OF THE DAY, THE MARKET IS STABLE. IT’S NOT AS BUSY AS IT IS IN A TRADITIONAL SPRING MARKET.

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