A tangent, but apropos:
About 25 years ago, Roy Clark (yeah, Hee-Haw) had a minor country hit "Thank God And Greyhound You're Gone."
That commercial ranks up with the top 3 all time blood-boiling pieces of garbage on t.v. Every time it came on I'd yell, "Man up and grow a pair. Tell the bitch to get a 2nd job if she wants it that much." My wife used to constantly harass me to get a bigger house but I continually stood my ground. Gradual hearing loss can be a blessing in disguise.
This is a sore subject and one summarized by the C-21 commercial you cited. Nicely phrased, by the way--the "you guys can DO this" hook from the sales-dame. Being an agent for clients is defined largely by looking after their best interests and working on their behalf to accomplish a goal. Being a retail sales/dame/dude is completely defined by looking after one's own interests without regard to the best interests of the client. Like the sales dame in the ad.
Real estate firms consistently reward sales people on the volume of sales dollars as if that is a correlation to working on the client's behalf. Until commission is removed from the transaction and replaced by fees, none of that will change. And it may not then.
Retail sales techniques spawned such "investment" gurus as Kiyosaki and Hopkins. Such memorable lines as "Buy assets and increase your net worth", "real estate is best bought with other people's money", "this property has three HUGE bedrooms. Is that large enough for your family or would you and your husband prefer the extra pleasure of an additional guest room for your friends?" (Pardon me while I retch)
All that pap works well enough when the roller coaster is on the way up (who can loose when the market is 'snapping'?), but not at all when the correction comes. A far more damaging scene is to fear one's bitchy wife so much that it is easier to cave-in than to make sound judgements. Pussy-whipped by a tyrant, men often (me included) do the wrong thing to take the easy route in the near term. Not good.
Women and the men that fear them. Some legacy.
Cash is king. Debt is bad. Income is good. More income is better. All ups have equal or bigger downs. Oh, and cash is king.
In 1952 my father bought a 1200 sq.ft. home with hardwood floors throughout and a full basement in a new sub-division for $6400. At the time he was employed as a furniture delivery guy. He was paid $50./week. Real house price = 128 weeks income.
In 1960 I bought a 25 year old duplex, with hardwood throughout, in a leafy neighborhood for $9500. I was making $100./week at the local GM plant and rented the upper floor for $65./mo. Total = $115./week. Real house price = 83 weeks income.
Three mos. ago, my youngest son bought a ten year old 1500 sq.ft house carpeted throughout and full basement for $480,000. He earns $1500./week. Real house price = 320 weeks income. Naturally, his wife has to work until his income rises.
I told my son not to buy the house because the market is at or near its peak. He tended to agree but his wife wanted the house and her wishes prevailed. Why did his wife want the house? One: her parents got rich buying real estate and she figures that there is no reason that they can't do the same. Two: although they have no children, she wants them; three children, to be precise and she could easily see them in this house.
When they told me what they had done I got a knot in my stomach. His wife had rationalized that even if the market went down they would be buying into a market that was down everywhere so the whole thing would be a wash. Silly girl. I told them that what they would lose is their down payment and that they would never be able to save another one in any reasonable length of time. Greed and wishful thinking, it will do you in every time.
What is driving the modern real estate market? In my opinion, it started with the advent of the two income family. They simply bid up the price of homes. People of my father's generation and, to a certain extent, my generation, made a bundle selling our homes to these young moderns. We weren't entitled to this money. We didn't get it because of hard work or risk taking. Still, who is going to turn down the dough?
We really don't have homes anymore. They are bought with the thought of windfall profits coming the home buyer's way. Nobody has to save any money, it is thought. People can spend all they have and they can still retire on their real estate profits. Its become a giant Ponzi scheme. And the children? Well, Mom can't be at home because the family needs her income.
I've got a few bucks tucked away and I will bail out my son and his wife when the time comes. But not right away. They must hurt a little for their foolishness.
As for many others who are in over their heads: life can be cruel for the unwary.
That ad would be better with subtitles as Lady Macbeth convinces her husband "We can do this!"
Over at the Housing Bubble Blog, on eof the regular commenters posts as "Suzanne, I researched this." Suzanne has been a running gag since the commercial came out.
Nobody has to save any money, it is thought. People can spend all they have and they can still retire on their real estate profits. Its become a giant Ponzi scheme. And the children? Well, Mom can't be at home because the family needs her income.
>>That ad would be better with subtitles as Lady Macbeth convinces her husband "We can do this!"
Glamis thou art, and Cawdor, and shalt be
What thou art promis'd. Yet do I fear thy nature,
It is too full o' th' milk of human kindness
To catch the nearest way.
Act I scene VI