Booming housing markets are obviously bad news for buyers, especially if they're afraid they're about to buy smack dab in the middle of a bubble. However, there are also reasons why residents and even home sellers should fear housing booms as well. When a city or town undergoes rapid growth due to a major corporation striking it rich, it isn't all champagne and caviar for the everyday people who live in the neighborhoods.
Owners who want to capitalize on the housing boom face two major problems. The first is that they likely weren't ready to move, and the second is the question of where they should move to. Because housing booms extend far past where the corporation has set up shop, it's not as though owners can purchase a property in the next town over. To reap the profits of their sale price, they may need to move clear out of state! Add that to the added stress of an early sale date, and it's easy to see why sellers aren't always making out like bandits.
When housing prices go up, so too does everything else. From insurance to groceries to entertainment, those with a steady income find that it doesn't stretch as far as it used to. So unless residents are planning to move to a cheaper area or they're about to get a serious raise, they're essentially left in a worse position. This undisputed fact has put residents in a tenuous position, especially if they were trying to save.
Unfortunately, it's usually the same developers who are buying up property during housing booms. These owners are primarily concerned with how to squeeze the most money from the well-paid employees at the nearest corporation. And while this is understandable, it tends to whitewash neighborhoods so everything starts to look the same. Even the landowners who try to brand themselves as funky to appear hip the younger crowd tend to water it down to the point where there's little personality or charm to what were once thriving and close-knit communities.
There's no doubt that corporations can bring unprecedented success to neighborhoods, but they certainly don't help everyone. The real value of a city or town doesn't come from CEOs, but rather from the people who work to build the community through its patchwork efforts. That kind of appeal can take years before it's noticed and appreciated and that's part of what attracts big business in the first place.
Terese Ferrara is a long-time resident of the Bay Area and has been a partner with the Goss | Ferrara Real Estate Team. She and her husband raised their two daughters in San Jose, where she successfully continues to build her real estate career.
After earning a bachelor’s degree from San Jose State University, she went on to teach in the San Jose Unified School District for 9 years. Transitioning to real estate was a logical choice, utilizing her patient demeanor to educate all levels of buyers and sellers. Knowledge and experience demonstrate her vested interest in delivering the highest level of care and professionalism to every client. She consistently strives to exceed her client’s expectations throughout the entire real estate transaction and remains a trusted advisor long after each close.
As a board member on KW Bay Area Estates’ Associate Leadership Council (ALC), she aids in support of culture and professional development strategies for over 180 associates. Terese is also a Director for the Santa Clara County Association of Realtors Foundation, which supports community service initiatives in Silicon Valley.
Terese is the consummate real estate professional dedicated to providing unparalleled service to her clients through ongoing training and education, keeping her on top of the dynamic market and latest real estate trends. Her high-touch approach coupled with honesty and integrity support her commitment to her client’s real estate needs.
