A Silver Lining?

For many years large cities experienced flight to the burbs, with families and some singles retreating from the hubbub of the city to a more tranquil lifestyle and a perceived better education for their children, in the suburbs.  Suburban and rural communities realized a significant growth spurt.  New home developments and the businesses to support living in these communities, grew at an unprecedented rate.

Then it happened. The greed of wall street, lenders and banks along with the unwitting public turned this growth into a colossal bust.  Now, many of these developments and communities are left half completed.  Many new homeowners find themselves in a financial bind as adjustable mortgages come due, interest rates rise and it becomes impossible to pay all the bills.  Foreclosures are driving home prices down so neighborhood home values drop below mortgage payoffs and remaining homeowners find they can't sell without coming to closing with substantial money. 

That's where we are today.  Will we recover?  Will these communities revive and home values return to growth?  History tells us that situations such as this are cyclical and we will realize an upswing in the economy again just as we did in the past.  We're being told that this recession may take some time to recover from, but we will recover and the American Dream will, once again, be achievable.  Home values will, once again, increase and, hopefully, we'll all learn from history and avoid another downturn for a long time.

Is there a silver lining to all this?  I think so.  There is a tremendous opportunity right now for qualified buyers to purchase a home of outstanding value for an unprecedented low price.  New and newer homes in the suburbs and rural areas can have huge incentives to help you buy.  Foreclosed homes within metro areas are listed at prices far below their true value.  Traditional home offerings are being forced, by the market, to be listed at a low market comparable price.  If you have good credit, credible income, and some funds available for a down payment or are willing to make the commute from the suburbs or rural areas, this is the time to purchase a home.  Will home prices still fall more?  They may.  But for those waiting for the rock bottom, beware - it will pass by unnoticed and we'll all look back at it and say "yes that was the bottom".