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Is the ECONOMY affecting your income?

This may be a trick question for some of you. You may be experiencing a big downturn in real estate sales right now. When there are a lot of foreclosures, the shortage of buyers is a short-lived issue. Soon, buyers will show up ready, willing and able to buy houses - but at a much lower price because of the foreclosure market.

My question is about the ECONOMY. Many people are having trouble keeping their heads up to feel good about current economic conditions. Yet, there are also many indicators that show a whole lot of buyers.

Here in The Woodlands, Texas I am amazed at the number of homes with one or more television sets that cost well over $1,000 and some ten times that amount. When in a department store...especially if there is a good SALE...there are people with carts loaded to the top with "bargains." Grocery stores are responding to a dramatic increase of demand for "high end" food products - from gourmet cheeses to grass-fed beef.

There are few signs that people are responding to any decrease in discretionary income in this part of the country. You will hear them moan and complain about the price of gas...but the number of gas saving vehicles on the road has barely shown an increase.

So what is the real reason why people are talking about economic stress? Is it the fear spurred and churned by the media? Is it a fear that personal spending will have to be decreased and negatively affect the quality of life? If we ignore the news...tighten our belts...and choose to surround ourselves with those who keep a positive attitude - will our personal ECONOMY improve?

Posted by The Woodlands TX Kathi Frank on 01/24/2008 10:25 AM

Comments (8)

the woodlands, buyers, foreclosures, economy

8 Comments on Is the ECONOMY affecting your income?

JAN

2008

Kathi, My husband told me all the time.....it isnt a "good deal" unless you need it. Now that I pay most of our daily expenses from my ever changing income, I do think more about what goes into that cart!

I watch my spending as well, I guess I always have. In good times I save more for the bad times.

Oh, goodness, Kathi--don't get me started on the effects of the media on our market! (you KNOW where I'll go with that one!) I will say that I am fortunate to work in a strong economic market here in Charlotte. Your post does bring to mind the tax rebate--as you said, there are those who have more than they need and continue to spend--I see the wise ones using the rebate to invest and the hap-hazard ones using theirs to go to Wal-Mart and fill up their carts! Of course, we all WANT them to do that to stimulate our economy!!

Hi Kathi with the lower U.S. dollar, the wild fluctualtions/drops in the stock market and the mortgage fiasco, I think reality will set in soon for most people. They won't have a choice but to curb their spending.

Kathi,

I believe this country is experiencing a recession right now. I know my family is. I am positive by nature and know that this country will turn the corner and make a comeback. We always do.

It is not media driven when they share the news. Reality is much worse than the media portrays it. Last year, personal debt exceeded earnings! That was the first time since the Great Depression! People spend too much, and put it on credit, then they tapped into their homes for equity. It does not work that way.

Not too long ago...you want a home? You need 20% down payment plus closing costs! You want a new car or TV, save up until you can buy it. Now that many are over extended they want to look elsewhere to place the blame. It is about personal responsibility, and accountability.

Last month on the evening news they ran a story about a couple that had just comeback from a cruise and found their home being foreclosed. Ask me if I care? I care about those that have legitimate issues and get behind the eight ball of life due to sickness, cancer, deaths, layoffs etc...

I think with the number of lenders closing their doors or downsizing their operation, the 86,000 mortgage professionals without work is a big number. Downsizing happens in a certain other lines of work as well. To these people the condition is severe. The media is blasting with the word "recession." But where people spend their money winds down to their spending habits. Many people would choose to pay for a luxurious item they don't need instead of paying their bills... It's interesting, but this actually happens. So the retail market may still perform well even though the real estate market is not doing so good because from many contributing factors.

I am hoping that because it is an election year, that the economy has a good chance of improving. You are so right, folks are over spending, I have noticed it, too.

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