I’ve typed the first line to this post no less than 10 times, there’s some great facts as you get towards the end, but I think I want to start with last Wednesday’s episode of Modern Family.
Kris and I look forward to non stop laughs while we relax and enjoy the seemingly wacky and chaotic lives of three separate households that are intertwined.
If your not a Modern Family fan, let me give you a little background of Phil Dunphy…
Phil is a real estate agent, and is married to Claire…they live in a nice neighborhood in a nice home. They have 3 kids, and all of the costs that go along with owning a home and raising a family.
Last weeks episode has “Phil” offering to take on the tasks of the day that his wife “Claire” would typically handle, as a stay at home mom…”Claire” woke up sick with a nasty cold. Phil was able to offer his time due to the fact he had several appointments cancel on him that day. His appointments were with “prospective home buyers”…
At one point Phil calls his client and leaves a very lengthy message about “price reductions” on the homes along with a near desperate plea to call him back and talk about the great opportunities in todays housing market…Shortly after this, Phil get’s a return call from that client.
By Phil’s response to the caller, one could only imagine the conversation was something like… “Don’t call me again, not buying anything right now” Phil’s facial expression said volumes…from encouragement to despair, as he flips the cell phone to close it…
One of Phil’s children, Luke, an empty headed but lovable little guy…probably around 10 years old picked up on what was going on and asked his dad if he was going to have to get a “real job“? Throughout the rest of the show there was a genuine concern between Claire and Phil about the drop in Phil’s real estate business.
As Kris and I watched this episode, we didn’t laugh as much as we usually do. This one hit home in a big way, there is no doubt that as real estate agents we have experienced the same alarming feeling’s the “Dunphy family” was experiencing.
Ironic in it’s own way is the question from Phil’s son, Luke, about will you have to get a “real job”?…
Television has an advantage, it’s a make believe world and jobs can be plentiful if the writers are so inclined, you can be an overnight millionaire running your own company.
But, as we all know, America is in a world of hurt. Last Friday the latest unemployment numbers were released. Finding a “real job” is on many Americans To Do List!
Bank of America also released on Thursday in a report that they originated $73 billion in first mortgages in the third quarter, down 24.7% from a year ago, according to this report.
According to its financial statement in the third quarter of 2009, BofA, the largest bank in the U.S. reported $95.7 billion in first mortgages for 450,000 borrowers to purchase a new home or refinance. A year later, the bank funded mortgages for 322,000 borrowers, this is a 28% + DECLINE.
The Mortgage Bankers Association recently estimated originations industry-wide to fall below $1 trillion in 2011. In 2010, MBA officials expect $1.4 trillion in mortgage loans.
“Homeownership rates are falling,” Sambucci said. “The homebuyer tax credit in 2009 and 2010 pushed whatever demand there was forward, plus structurally, there are fewer people that want or can buy a home.”
“Households remain cautious given the weak job market,” said Jay Brinkmann, MBA chief economist. “On top of that, uncertainty regarding tax rates for next year, and the potential for tax withholding to increase at the beginning of the year, lead us to forecast that consumer spending will remain weak, particularly in the first half of 2011.”
The homeownership rate as measured by the Census Bureau, fell to 66.9% in the third quarter the lowest rate since 1999.
So, there it is…more reality, but not necessarily doom and gloom in my opinion. If you’ve recently purchase a home, you don’t have the worries of negative equity. But for those American’s suffering the hardships of unemployment, and homes that have negative equity, have faith.
Things will get better, for Kris and I the past several years have been some of the most financially devastating we’ve experienced in our lives. But from that has come some of the best years, we’ve learned what is truly valuable. Yes, it does take money to survive in this world…but…when the amount your able to spend is limited you find other ways to enjoy life.
Spending more time with family, renting movies, playing board games when we all get together has been the most wonderful experience! We’ve had so much fun, serious…it’s almost Free entertainment and I believe the best things in life are Free!
For the record, Kris and I love our “real jobs” helping others and being of service is not going to make us millionaires in this economy, but we measure our wealth in other ways. We are truly blessed and give thanks to God for everyday.
