Article from Las Cruces Bulletin Neighbor to Neighbor 4/15/11

One of my duties as President of the Las Cruces Association of REALTORS is to write articles for the Neighbor to Neighbor published by the Las Cruces Bulletin.  It is reprinted here with permission.

Is homeownership relevant?Real estate has had much negative publicity since the downturn in the real estate market caused some hom­eowners to feel their home might be more of a risk than an asset. I felt this topic should be addressed directly in my first article as president of Las Cru­ces Association of Realtors.

The real estate sector in this country has taken a beating the past few years, and many peo­ple are wondering if homeown­ership is right for them. We’ve had chronic negative publicity about the meltdown of the real estate economy. All of us were harmed by speculative buying and risky mortgage products, however, most people are paying their mortgages on time, every time and they love their homes.

Yes, real estate market values have decreased in this correction cycle, but they will improve over time. A home is not a cash cow, but as part of a financial portfolio, it is more stable than a wildly fluctuating stock market.

There is a larger picture of homeownership. It is incred­ibly important to the struc­ture and quality of life of any community. People who own and live in their homes have a strong interest in taking care of their investment.
They care about what is going on in their neigh­borhood and the direction government leaders are tak­ing. They’re more motivated to communicate with their elected officials.  Homeowners are more likely to participate in civic leadership. Renters, by the nature of their tenancy, gener­ally do not share in this level of stewardship.

The difference between a neighborhood of owner-occu­pied homes and a neighbor­hood of tenant-occupied in­vestment properties is a very compelling argument for pro­moting home ownership in every possible way. There are good landlords and property managers who do an excel­lent job of maintaining their investment portfolio, but a bad landlord or low-quality tenant can be like a virus, spreading disease and decay to the property or neighbor­hood and beyond.

Homeownership is as rele­vant today as it ever was. Hom­eowners have more control and personal satisfaction in their lives, and more commitment to their communities. It is in everyone’s best interest to get the real estate market back on track. With the interest rates still at his­toric lows and the low market pricing, the buyer with a real­istic down payment and view toward the long-term com­mitment is in a good position for one of the best times ever to participate in the American Dream of homeownership.