We Are Not Alone!

Hello! It's been a while, not that any of you missed me - I know better than that.

The title of my post does not indicate that beings from another planet have arrived in Detroit. On the other hand, it doesn't mean they haven't arrived, either! I suppose if they want to buy a house bring 'em on! Lots of 'em.

What I do mean is that we aren't alone in our housing slump. We aren't alone in our pain - at least on the housing front. In terms of overall economic decline, not many will argue that Michigan is suffering more than most - if not all - other states. Between the limping auto industry, the loss of other manufacturing jobs, declining housing values, an exodus of college gradutes to other states, Michigan has it pretty bad to be sure. Unscrupulous mortgage lenders and record foreclosures just seems to be piling on at this point.

There is good news and there is bad news with regard to real estate, though. First, the good news - we are not alone! Now for the bad news - we are not alone!

Let's talk about the good news first. I read an article today about the housing "crisis" and the top foreclosure markets in the country on a popular Internet site and guess what? Detroit wasn't mentioned once. Not once. Hooray! Michigan was only mentioned in passing, too, and referred to as "rounding out the top ten". This is good news on a couple of fronts. First, we aren't at the top of the list (Michigan still tops the unemployment list, however). In fact, we are barely in the top ten.

Second, there are a lot of other markets ahead of Michigan on the list - venerable, bullet-proof markets. Markets that everyone thought were untouchable juggernauts (I love that word) of appreciation. Markets everyone thought would be perpetually propped up by sunshine, an aging and mobile population and real estate investors. Markets like Florida (particularly highbrow Cape Coral & Fort Myers), Arizona (especially venerable Phoenix), Nevada (specifically Las Vegas, one of the fastest growing cities in the country for a long time), Georgia (did anyone ever think Atlanta would fall apart?), and California (exclusive Riverside / San Bernardino are in a shambles). These markets are now reeling from foreclosures as speculators (some of whom call themselves investors) walk away from condos purchased on the assumption that property values "can't go down", and owners that can't give their places away.

Don't misunderstand, I am not taking pleasure in the pain and suffering of other states. I'm not that cruel. At the same time, it is important for us to understand that Michigan is not alone. We see and hear so much negative news about the dire straits in Michigan that it's easy to think we are all alone in our misery. In some ways, it's almost easier to think we're alone - it makes us special in some sick way. We're different. Nobody understands what we're going through. We aren't alone, though, and we need to realize that the problems we have here are not unique. The causes may be different, but the results are the same.

We don't really need to talk about the bad news, do we?

Until next time - Make IT Happen (whatever IT is in your life)
Bernie