I have been spending much of the summer completing the writing of my third book which will be published and available this fall. Much like these newsletters, it will focus on what is going on in our daily lives relative to our government, our business, our spirituality, and our general well being. I believe, stronger than ever, that we are not in just another down economic and emotional cycle in our country, but rather we are in an entirely new era, a “new normal’, as I have been calling it.
Relative to business, by far the question I am asked the most is when will real estate make a comeback, or really, what most want to know if they are homeowners is “when will my house be the same value it was just a couple of years ago?”. To me, the answer is actually quite simple. Real Estate, our homes, are just like any other product, in other words, the value is determined by supply and demand of the product. Typically when there are more buyers than sellers of a product the value goes up and when there are more sellers than buyers’ value or price must go down. Isn’t it really just that simple?
The only thing that will cause real estate values to increase is an increase in the number of buyers and this seems doubtful in the near future. Will home values continue to fall? Yes, most likely, as the sellers will need to lower their prices to attract the few buyers in the marketplace. I have recently spoken to several homeowners who may need to sell their homes, but they want to wait until the old value returns. My response typically is, “What if the value goes down further over the next two years, won’t today’s price look good at that time?”
If I am correct, then should anyone buy a house anymore, and my answer is definitely yes under the right circumstances. I still believe that one of the best ways to acquire some degree of wealth and financial security over a period of time is to buy a home and get it paid off even with little or no appreciation. The individuals I know who are weathering the financial downturn the best are those that have paid off their houses and their cars. Yes, this takes time and discipline, but it is an almost guaranteed way to have some wealth and peace of mind. What’s the best way to go about this if you are a homeowner now or contemplating a purchase? Get a 15 year mortgage instead of 30 years and start you program to security.
Next, of course, everyone wants to know about job creation and finding a good high paying job. Unfortunately this is another bleak picture for the near future as we don’t manufacture many products anymore in the United States, and technology is eliminating numerous other jobs. Many high paying jobs of the past are just gone and not coming back. In my particular area of expertise, the mortgage banking industry, there are much fewer jobs today than five years ago and wages are greatly reduced. Of course, this goes for other industries as well.
What’s the answer? Again it seems obvious that most of us are going to need to work for fewer wages than we previously earned. Perhaps not pleasant, but it is what it is.
So fewer jobs, less pay, and our homes are continuing to go down in value, then how do we keep the smile? For most of us it’s a whole new way of looking at life. It’s understanding and embracing that we are not what we earn and we are not what we can buy. We are individuals on Planet Earth living the duality of a physical and non-physical (spiritual) experience in cooperation with everyone and everything. This will be the great lesson of our economic downturn and foundation of the energetic changes of 2012 and beyond. How do we learn to live this great duality? This is what I am trying to learn for myself and then to teach in these newsletters, my new book, and my speaking and coaching. It is a challenge for us all and victimhood will just make it worse. Eventually, it will come down to taking total personal responsibility for perhaps the greatest changes and challenges of our lifetime.
Can I ask for your assistance on something? My new book, which I mentioned earlier, will be with my editor in a couple of weeks and published shortly thereafter. I am actively looking for book endorsements from well know people for my marketing. I will be sending an unedited copy of the book to a few individuals to see if the content is something they would like to endorse. If you know of someone to be included in this process I would be very appreciative of your assistance.