We have all become more educated on the immense correlation between the health of the real estate market and the overall economy in the entirety of 2008. We have also become privy to the effect our own economical woes here in the U.S. have on global markets. The domino effect that was set off by faulty subprime lending practices continues to wreak havoc on nearly every other existing industry. When mortgage lenders bagan to fail, investors were quick to take their money out of the risky mortgage bonds and faltering equities and put it into commodities. In turn, gas prices soared. Food prices also spiked sharply as a result of the financial speculation in commodity futures, and all prices increased across the board due to the higher price of moving product to market. Individuals already feeling the strain of making mortgage payments that "experts" told them were feasible for their incomes and expenses with consideration to fluctuations in the market were completely destabalized by the price increases. Consupmtion dropped dramatically which placed enormous pressure on small businesses and long standing industries to restructure ... and quick. A frenzy of pay cuts, layoffs and shut downs ensued. Tightening (and necessary) mortgage restrictions in conjunction with individual financial distress and diminished job security caused residential home sales to decrease dramatically. Inventory (homes on the market) subsequently climbed causing home prices (and household wealth) to decrease lending to even less spending. And so the (self perpetuating) cycle continues.
Now for my gratuitous grasp at hope and summons to act ...
For those wise and willing few who have not been knocked down to their knees, or those who still feel it is within them to get back up and brush themselves off ...
Get out there and seize the day and the multitudes of opportunites that exist only as a result of this mess. Home prices are low, mortgage rates remain very low, there are a multitude of properties to choose from and sellers are ready and willing to negotiate. If you are in the position to buy now ... then what, by gosh, are you waiting for!?!!!
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