The Global Financial Crisis and Real Estate (part 7)

The Global Financial Crisis and Real Estate (part 7)
In conclusion of this series, let me say no one really knows what is going to happen to the real estate markets as a result of this crisis. A lot of the results are manifesting now. The really big question is how much of what’s happening is a result of temporary fear and how much is long term and more or less permanent. There is no doubt that subdivisions with poorly constructed homes and many foreclosures have a potential to become new slums. There is no doubt that some markets were severely overpriced.
The positive factors are that the population is still increasing. People need a place to live. How many of them will settle for less than they had before? There is a lot of cash around. Sales of municipal bonds are doing very well. That cash will have to go somewhere when the fear portion of this debacle is over. Will it go into investments that benefit the general world economy or will it go into gold bars and similar static investments? What will happen when the money starts moving again?
Will there be a pent up demand, or will the austerity learned in the hard times prevail? My parents were raised during the great depression. My mother turns out the lights when she leaves a room. Even though the price of gasoline is dropping, usage is still going down. Is this the current economic situation; or are habits permanently changed? Only time will tell.

David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com