Did you know: The current real estate market, and how it functions, dates back to the end of World War II, 1945. Up until the war, a fairly small percentage of Americans owned homes. It was generally pretty difficult for average Americans to afford to buy a home, and financing a mortgage was rare. After the war, financing assistance programs such as FHA, and the Veterans Administration were established by the federal government. The purpose was to help middle-income Americans, and Veterans returning home from the war to finance a home.
Immediately, the number of homeowners began to rise. To this day, FHA and VA loans make up the largest percentage of financing choices for first-time buyers.
Did you know: In that same 75 year period, the cycles of buyer markets and seller markets generally lasted approximately 8 – 10 years. This is largely attributable to the following two factors. First-time buyers tend to live in their first home between 7 – 8 years, before having children and requiring more space. The second factor is families move into their second home, raise their children, and get them through high school. Once that’s accomplished, they sell their home, relocate, or downsize. The only time since the end of WWII that we saw a dramatic change in those cycles was 2000 – 2009. In 2000, natural market forces were disrupted by alternative financing options, allowing buyers to purchase homes well above their means. In late 2006, that market abruptly corrected itself, when the housing bubble burst. The result was a huge number of homeowners were forced into distressed sales, such as foreclosures and short sales. The market was slow in returning to some sense of normalcy, beginning in 2010.
Did you know: The first builder/developer to build large scale planned communities in the suburbs was a man named Abraham Levitt. He’s best known for a community in New York state called Levittown. After that, other builders and developers started buying huge tracts of land, which in many cases had been farmed. So the 1950s became the decade that started the suburb boom. All of a sudden, city populations began to decline.
Did you know the age of America’s 132 million homes breaks down this way? Homes between 55-95 + years old make up 31%. There are 11 million, 8% built from 1929 – 1939, and 9 million, 7% built in 1919 or earlier. Homes built from 1940 – 1959, 21 million, 16%. Homes between 15 – 54 years old make up 55%of the total and break down as follows. 33 million, 25%, were built between 1980 – 1999, and 40 million, 30% between 1960 – 1970. Homes 0 – 14 years old make up 14%, having been built since 2014.
Changing gears, did you know the following? Money is the number one thing that couples argue about. Macadamia nuts are toxic to dogs. When lightning strikes, it can reach 54,000 degrees Fahrenheit. Spiders are not insects. They are arachnids. When you see a full moon, you’re always looking at the same side. The word stewardesses is the longest word typed with only the left hand. And the following. Did you know there’s no such thing as a naturally blue food? Honey is the only natural food that never spoils when stored properly. M & M candy stands for the initials of the inventors, Mars and Murrie. Celery is a food that allows you to burn more calories to eat it than it contains. The more you eat, the thinner you become.
Back to real estate. Did you know that the kitchen is the room that helps sell homes, more than any other room? Bathrooms are next on the list, especially master bathrooms. Did you know that two of the best projects to do in a home to get a good return on investment are carpet and fresh paint. A general misconception is that it should be left up to the buyer to do those things, so they can make their own choices. Thank you for playing the home version of “Did You Know.”