When ever anyone mentions the economy and the real estate market it almost always is mentioned that the start of the problems were the so called liar mortgages.

I always just shook my head and said (or thought) that this wasn't the beginning of the downfall for real estate - it was overproduction in my opinion.

In 2000 and 2001 everywhere I drove or walked I saw a new subdivision going up - whether it was single family homes or condos. Almost every farm was snatched up by developers to be turned into another "You have to buy a home here!" mega subdivision. I can't be the only person that thought "Who is going to buy all those homes?" and "Don't we have enough housing to go around already?"

Living in the automotive belt of the US we have become accustomed to the Big 3 suspending their production lines when supply exceeds demand. It usually occurs directly after the Christmas holidays. The manufacturers talk to their dealers and determine that X amount of autos are sitting on the lots, and only Y amount of a days supply are needed. This coming January Chrysler will be shutting production for what appears to be the whole month, and General Motors has also announced a lengthy shut down period. The dealers will be able to clear their lots of automobiles before more are brought on to the market. Suppy and demand.

It's too late to do anything now, but wouldn't it be grand (and prudent) in the future if housing was built on the same principle? Supply and demand? The last thing I want to see regulated is free enterprise, but perhaps there is a solution that could be put into place before the next building frenzy occurs.

~Kris Wales~ a Macomb County MI real estate agent