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The American DreamThese past five years have been difficult for many homeown-ers. Home prices are down a minimum of 15 percent and as much as 70 percent in some extremely hard-hit areas such as Florida, Arizona, and Nevada. Millions of unfortunate owners are left with upside-down mortgages, owing more than what their homes are worth. Millions have lost their jobs and are so financially distressed that they no longer can afford their homes at all. As a result, they have no choice, but to go into a short sale or foreclosure. A well-loved home ends up a bank-owned property.

Did the drastic decline in the industry come as a surprise? Absolutely. For the wide array of professionals connected to real estate, January of 2005 started out on a high note; a new year with new possibilities. Then, as the months passed and the market started to slow, it became very clear that we were at the beginning of a correction. There was no way that the housing industry could continue to inflate the percentage of home equity year after year. Back in the mid-1990s, some homeowners were getting anywhere from 6 to 10 percent ap-preciation per year! Sadly, those who banked their “golden years” in real estate found that the investment yielded little more than good memories and lost dreams.

The downturn in real estate has touched all of us in one way or another. How we respond to it is a personal choice. Motivational speaker Brian Tracy sums it up, “You cannot control what happens to you, but you can control your at-titude toward what happens to you, and in that, you will be mastering change rather than allowing it to master you.”

Likely, the dream is not lost forever. We cannot dismiss how frustrating and emotionally wearing it is to be saddled with a home that won’t sell or how tragic it is to lose one’s home due to unemployment, a faulty mortgage, or other unforeseen circumstances. A lot of responsible homeowners

find themselves in dire straits through no fault of their own.

Many in this situation have come to terms with losing their homes. They are now renting, fixing up their new digs to suit their taste. They believe that the process has made them stronger and appreciative of a simpler way of living. The hardship has given them the wherewithal to live their lives

Is it a good time to buy, to sell or to rent? Today’s economic climate has thrown the real estate sector into a tizzy making it difficult for buyers and sellers to navigate these challenging and ever-changing times / By Cheryl Brenna

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on a different level. Some are in the position of being able to buy a less expensive home; others are leasing with the option to own. Hope endures.

Good newsHere’s the good news: In our area, Wisconsin and Min-nesota, the market saw a positive uptake through the end of April of this year. This was due in large part to the tax credit for buyers. It not only created a great opportunity, especially for first-time homebuyers, it also gave sellers the chance to get their home sold. More potential buyers were ready, willing, and able to purchase a home, and more homes that listed under $300,000 went into multiple offers than before the tax credit.

There are excellent values out there. One couple recently purchased their new home for $352,000 less than what the previous owners spent on building it five years ago. Anoth-er couple bought a home for $140,000 less than what the sellers paid four years before. In both cases, such valuable gains more than made up for some financial loss on their home sales.

I know, I know. You’re thinking, she’s a Realtor®, and agents always say, “Now is the best time to buy.” But honestly, Real-tor or not, I still believe that it is a good time to buy a home and here is why:

The housing industry from the mid-1990s up to early 2005 was a big part of what drove our economy. And with its col-lapse, our country was thrown into the greatest recession since the Great Depression. The upside: Now, with inter-est rates at their lowest in six decades and the inventory of available homes at more affordable prices, we are finding that sellers who are also buying are coming out on top when purchasing a new home, whether it be an existing home or new construction. Pride of ownership may be the number one reason why peo-ple have a desire to own their home. Owning grants you the freedom to paint the walls in the colors you love, to attach permanent fixtures, even crank up the volume while listen-ing to your favorite music. It’s your home and it can reflect your personal style. Home ownership gives you and your family a sense of security. It’s making an investment in your future. On the emotional side, it is your sanctuary, a piece of

real estate that you can call your own.

And keep in mind that owning a home is an excellent tax shelter. Our tax rates favor home ownership. Mortgage interest and property taxes are fully deductible on your tax return. In spite of the doom and gloom, people are selling and buy-ing homes. With interest rates so low, homeowners may be in a position to purchase a home worth $100,000 more than what their current home is worth and still have a mortgage payment close to what they are presently paying. Now, that is motivation for a prospective seller!

Over the past five years many people have put everything on hold, tired of waiting for the economy to change. Rest assured, change is afoot, now is the time to go for it, no look-ing back, only forward with excitement and enthusiasm for a new beginning in a new home. Take a moment to ask yourself these questions: • Doesmycurrenthousingfitmylifestyle? • Haveweoutgrownourhome? •Wouldadifferentstyleofhomebemorefittingforourfamily? • HowlongdoIwanttolivewhereIam,andisitagoodtimeto thinkaboutmoving? • IfImove,doIplanonlivinginmynexthomeforfiveyears orlonger?

• CanIgetmydreamhometoday?

If you answer yes to some of these questions, it may be the right time for you to explore the idea of a change. It could very well become your reality and one of the best decisions of your life!

RealtorCherylBrennaspecializesineastmetrohomes.Sheisaseven-timerecipientofSuperRealEstateAgenthonorsfromMpls.St.PaulMagazine.TheCherylBrennaGroupisaffiliatedwithKellerWil-liamsPremierRealty.Moreatwww.cherylbrennagroup.com.

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