“How many of us remember what it was like in the early-mid 90’s? The last thing anyone wanted to do then was buy a home.”
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I honestly don’t recall a widespread anti home ownership sentiment in SD during that time period. My recollection is that we were in the midst of a recession and most people I knew were under-employed and/or struggling to make a buck and/or concerned about career prospects in SD. The local economy seemed pretty narrow in scope and the phrase “sunshine wages” got tossed around quite a bit. I know a number of those in the “young professional” category who packed up and moved away, looking for greener pastures. But I just don’t recall anyone saying they didn’t want to buy a home or that a home in SD would be a terrible investment. In fact, my recollection is just the opposite – but the problem was no one was making the money or felt secure enough in their job to take the plunge. Of course, this is just my recollection.
Psychology on the buy-side is of course most relevant in a situation where someone has the means to get into the market but may choose not to. This is where things get interesting. En masse, how long will those who are able to stifle the seemingly inherent urge to own their own home be able to hold off on buying? How long will they wait? I have absolutely no idea. How will the general psychological make-up of many Americans – I want what I want and I want it now – factor in? Will MSM reporting “real estate = bad” trigger a sheep mentality that will over-ride what I see as a pre-existing and inherent desire to own and the “I want it now” mentality? Who knows – I sure don’t. But it’s going to be interesting to see how it plays out.
