Suze Orman and many others like her have Americans hanging on their every word. Many have said that because of the duration of the “Housing Reset,” the housing dream is dead.

Yes, at no time in history have we had as many people selling their homes, which are upside down balance-wise to fair-market value, and returning to renting; or who have credit challenges. While that is a fact, it is not in any way indicative of what Americans want. They do not want to make a landlord wealthy and they do not want to lose the benefits of homeownership.

The fact is that many got themselves into this position by borrowing against their equity and borrowing more than they should BECAUSE THEY COULD.  As we return to a national level of homeownership that reflects the true risks and rewards of the lender and buyer alike, the future for homeownership is as bright as ever before.

When we bought a new car and drove it off the lot, we knew it depreciated and so did the lender. But the auto lender took care of his risks in the form of a down payment and an interest rate. A home is collateral and lenders, like all of us, banked on inflation and appreciation rates that could not continue.

Since 1950, even with the past few years of downward adjustments, we have seen steady appreciation in real estate. A closer look at this appreciation, in light of today’s low interest rates (not to mention the other benefits of homeownership) would likely have these sensational taking heads eating their words or perhaps sensationalizing about something else.

In her book The Money Class, Orman talks about unemployment and high lending standards.  While she makes some very true statements, what she fails to relate is the fact that affordability and desire are two completely different platforms. With low interest rates, low prices and high rent prices, there is no time in history like now to buy a home.

By Pat Riley