Friday, May 8, 2009

Housing Headed South

So typically, the worse the news in real estate - the more I trust it (grin).

Too many contributors to the dialogue are compromised; national associations, real estate companies, corporate builders and local realtors. Still, in a recent example from John Wasik on Bloomberg.com, (author: The Cul-de-Sac Syndrome - an incisive look at the potentially damaging consequences and hidden costs of America's suburban lifestyle) the facts don‘t seem to be… facts.

"Lenders are demanding a 20 percent deposit for home purchases, and want impeccable credit ratings." This may be what is truth outside of my little world, but this is not the case here in Nashville. Not at all. Is this what you are seeing in your neck of the woods?

"They are only 44 million strong, not as wealthy and even more in debt from college loans." An aside: Will this ‘buster-dip’ create another boom in housing (decades from now) once the following generation, estimated to be larger than the boomers, comes through?

"…it shows that more than half of all new construction is in the South, where the cost of housing and living is significantly lower than in the Northeast, Midwest and on the West Coast." ALL for this, being here in the South (grin), but isn’t this more a sign of our knee jerk reaction? Isn’t that same guy who is buying a more affordable home in the south (right now) going to wake up in ten years and say its time to go back to sunny Southern California or Florida?

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