A home is wherever you rest your head.
It's a place to nourish. It's a place to play. Your address doesn't have to end in 90210. You simply need to belong. In the past, home ownership wasn't always so simple.
Once upon a century...
The roaring (nineteen) twenties were characterized by opulence. It was the era of the Great Gatsby. A time of irrational exuberance. Estates were laced with extravagance and filled with lavish parties. Why? Because they could. Ceilings were vaulted and so was their wealth. Home decor was bold and ornamental. Households from this era would probably scoff at your iPhone's minimalism.
As the 1920s came to a close, the music stopped playing. After Wall Street buckled, nearly half of all banks scuttled and unemployment rose to ~30%. Many were forced to live in shantytowns. These districts were nicknamed Hoovervilles after President Hoover. The neighborhoods featured crude structures that were constructed from salvaged materials such as cardboard, tar paper, glass, lumber, and tin. As always, location is paramont in real estate - even for the economically challenged. Shantytowns were found near sources of water with some featuring communal gardens. Although this paints a glossy description, shantytowns were often unsanitary and crime ridden.
Those who cannot remember the past are condemned to repeat it.George Santayana
There are many similarities between the Great Depression and the Great Recession of 2007:
- Interest Rates The decade preceding both Greats crashes, interest rates were reduced to stimulate growth after the Searing recession of 1920 and the Dotcom crash of 2000. While the monetary policy had good intentions, it gave birth to grotesque bubbles.
- Savings Rate Unlike 2007, however, the savings rate in the 1920s was relatively high. Unfortunately, these savings vaporized when the banks foreclosed, which left many Americans unable to access their funds.
- Home Values With crumbling stock prices coupled with high unemployment, residential property values dropped by about one-third during both eras.
Everyone has a budget. Including the Joneses.
America has come a long way since the dirty thirties. We’ve all hit bumps along the way, but we’ve endured. When you think about your next home, consider what you value most. Your distance to earning. Your distance to learning. Your proximity to friendship. The space you want and the privacy you need. These are the factors we considered when we calculate a property's Suggested Estate Price.
Discover a property's Suggested Estate Price by texting [address] to (650) 297 0792.