The American Dream: Threatened with Extinction?
The American Dream may have been pronounced all but extinct from some quarters of late, but at least one piece of information makes its impending demise questionable. It’s an unchallenged fact that everyone who keeps tabs on Costa Mesa residential real estate will verify—one that writer Claire Trapasso summarized neatly in last week’s Realtor News:
“Homeowners racked up some serious wealth over the past decade.”
The recent track record experienced by participants in that American Dream (Costa Mesa version) is impossible to ignore. Back during the Great Recession, voices from many quarters focused on the financial beating taken by those who had joined a speculative rush, hoping to profit from loose lending standards. That lax period encouraged less-than-qualified mortgage borrowers to purchase houses they planned to sell within a short period of time. That may be the “stuff dreams are made of”—but it’s not anything like the true American Dream. And when the international banking system suffered a major shakeup, many were forced to sell at a loss (or worse).
Even though those circumstances were an anomaly, they caused the widespread devaluation of markets globally—Costa Mesa residential real estate included. Although the vast majority of homeowners suffered only paper losses, the hue and cry in the press was universal: the luster of homeownership, in general, was gone! The American Dream had been tarnished—perhaps retired permanently!
Viewed through the lens of history, that was nonsense. Most Costa Mesa homeowners would have been totally unaware of their theoretical financial shellacking if they didn’t happen to tune in to the nay-sayers. If they happened to glance at valuations a few years later, they would have yawned and gone back to their lawn mowing. On valuation charts, the dip (at first, a fright-producing steep drop-off) took a decade to reverse, and a while longer to resume its historical climb. But climb it has. As recounted by Trapasso:
- “The value of their homes has soared 68% since 2012…”
- “Middle-class homeowners who bought real estate during the depths of the Great Recession built over $122,000 in wealth…”
- “Low-income homeowners saw about $99,000 in home appreciation over the same period…”
Far from spelling doom for the Dream, the current crunch in affordability simply means that it is tantalizingly out of reach for many—and history tells us that this is bound to be temporary. But does it mean the Dream of homeownership is threatened with extinction? It would seem far more likely that the opposite is true: it may be elusive for some, but that makes it all the more tantalizing. And worth pursuing. The bounty to those who ignored naysayers at the height of the Great Recession proves the point.
The benefits of Costa Mesa homeownership are still there, as is the advantage of teaming with the know-how and experience of a licensed Costa Mesa Realtor® to help secure them. Call us to discuss how you can write your own version of the Dream!
We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at info@thel3.com
Real Estate, Costa Mesa, Homeownership, Dream Home, Property Investment, Housing Market, Real Estate Market, Opportunity, Community, Innovation, Luxury, Quality of Life, Homebuying Process, Mortgage Rates, Home Equity, Neighborhoods, Smart Home Technology, Sustainable Living, Coastal Living, Southern California
