Wednesday, November 5, 2008



Anonymous said...

Oh sh*t - you guys are Democrats? I never would have figured.

Anonymous said...

Now how am I going to save a 40,000down payment to buy a Belmont cottage.

Real C'ville - The Bubble Blog said...

LOL, anon #1.

One of us is Dem, one of us is Ind ("Go Ron Paul!") and one of us became an "Obamican" after the choice of McCain's VP.

& anon #2...well...whoever was chosen for Prez faced a serious uphill struggle with the economy. It's going to get worse before it gets better in all sectors of the economy.

House prices in this area will continue to fall for some time not just because there's a global recession, but because the local market was slower to follow the nat'l trend of declining prices.

And our microeconomy is starting to take bigger hits: UVa suffered some serious losses to their endowment and have more on the way (we'll expand on this in a future post) and Circuit City is the 1st nat'l chail to close, which deprives the County of revenue. More store closings will follow. Sales will be low over the holiday, depriving City and County of tax revenues. Gas prices will rise again, and it's winter so more $ will also be spent on heating houses. The latter means less disposable income for shopping--and for saving for a downpayment--and there's more unease in committing to a mortgage right now when folks don't have a $ cushion.

146 of 3529 listed properties in the entire area (includes the Valley) sold during October, according to the C'ville Area Realtors Assoc. Around 35% of listings are vacant, according to RealCentralVA.

Will there suddenly be an influx of "Affordable Again" OR "middle class" OR $1M+ buyers now that we're in the slow sales season?

Past experience says no; all signs of current economy say no.

Toss in the disparity between wages and house prices, and prices still have a ways to decline....

And with good credit, there are still 97% Loant to Value loans available. But just because one can still do a "small" downpayment on a house doesn't mean you want to overpay for it....

Obama was the right choice to restore America to its status as Shining Beacon of Hope to the rest of the world. It's good to approach the future with a sense of optimism rather than dread, isn't it?

Will there be jobs and prosperity for more? Time will tell....