The Governor of the Federal Reserve has spoken and reiterated that the problems the financial industry is undergoing may be too much for even the Federal Bank to fix and that recovery expectations should be lengthened. This is due to the many avenues of the financial market that began in Wall Street which suffered a lot when the bubble in the sub-prime lending market burst through the roof catching everybody off guard. The bubble’s bursting was so fast, people in the most affected industries didn’t get enough time to take shelter and they themselves have fallen victims to the instability in the various affected markets.

Moves for housing starts and construction permits continue to be down as the housing market enters a seemingly surreal state of non-movement. Excess supplies of homes with no buyers and almost no applications for the construction of new ones compared to other years. This solidifies the belief that most if not all people who are thinking of purchasing or buying new houses have moved to halt all plans in hopes of waiting for the smell of stability in the air. The expulsion of the HUD’s director signifies the dire need for more regulation, monitoring and control of most agencies that handle financial resources. Corruption has become commonplace that many do it yet never admit to it. Permits issuance in the Northeast and South were indeed positive while in the Midwest it was down a miserable 10.65 with the West faring worst at a decline of almost 20%.

Hardly for the instability is very much far from over with many financers declaring losses in the millions of dollars. Insurance firms reeling in resources from the housing insurance market and refocusing them on other areas which are more profitable such as in Florida where a major insurance firm is said to be leaving 50,000 home insurance policies waiting for them to expire and not offering to renew. The government has announced plans to provide safety measures to prevent further foreclosures but that might come a bit too late for it to make and impact. Even the re-funds that are being given to Americans may not be much to help them through the mortgage rut the industry is in.

Mortgage rates are the main culprit in the current housing crisis that has swept America by surprise leaving many people without houses and not the other way round. Many in the real estate market wish to clear this up for many are blaming them for the sub-prime credit problems which were in fact the cause of the very much unstable housing market. Forecasts of a slowing economy coupled with a rise in unemployment insurance claims have further complicated the situation preventing it from bouncing back to acceptable levels. Insurance firms are opting not to renew housing insurance due to high risks of ending up with tons of foreclosed properties that nobody wants to buy. The money market shouts “Housing Market Depression”, yet financial markets are faring worse for the US dollar is losing strength especially when the Euro is gaining ground on financial markets all over the world.

Other areas which makes a difference with regards to dogs is collating houses that have hardwood floors instead of carpet, have a fenced off yard which allows Fido the luxury of a place to play in without having him dig out your neighbor’s yard and a space where he could be kept happy when you have guests giving owners a bit of privacy during parties and other functions. The trend has become a phenomenon that it has spread into online nationwide networks which have data on owners within a specific area which whom one can share information with regarding their pets. On Yahoo, there is such a group that gives prospective homeowners the ho-down on which houses have the best accommodations for your furry little friend along with others like you. Many other social networks allow such interaciton with homeowners who might need advice regarding their pets and how to care for them.

An article on the San Francisco Chronicle” tells of a story regarding the lengths people (real estates agents) are going or turning to just to stay in the business. Strategies such as a Florida agent who made a market for people who love the nude in the sunny and resort state having a tagline saying “Skip the outfit, wear the lifestyle”. Another area that has seen much improvement is the aspect of agents who offer specially chosen homes for pet lovers and those who love other animals, recommending those areas whose neighborhoods which have good reception regarding pets. Nearby parks, animal clinics and other people in the neighborhood who may have the same passion for pets are banding together in getting Fido the best possible place to live and be loved along with his family. There are a lot of pet owners who have had to turn down offers for properties that they love only to find out that the place does not allow pets.

Even with the growing turmoil in the housing sector, the area of senior’s housing and care has held its own. That along with a maintaining interest in vacation/investment properties is proving to be the only good news since the bubble burst sending people out in all directions. People lost homes, credit companies closed down overnight and many more of these bad incidents that showed the worsening financial turmoil overshadows more positive news. The elderly are also in trouble for current statistics show that the upcoming batch of retirees would not have enough finances to last their whole retirement. Why, well inflation has eaten bites out of their already saved up stores and rising costs associated with health care and other needs are sure to tax heavy on those same stores the economy continues to slide as more and more suffer from the consequences that all began with too much money being lent to those who couldn’t pay. When the bubble popped, it took a lot of homes and lives with it, ruining most, leaving them without decent housing. Seniors are going strong for now, but for how long, that is the question.

Foreclosures slow or even non-existent movement in the new home sales area along with more bad news that house permits are being issued at ever lower levels doesn’t paint a good picture. The ability of the Federal Reserve to provide assistance is there yet they couldn’t do it all the time without endangering further the economy of the already troubled US. Budgetary spending increases in defense (namely Homeland Security and the war’s the US is part of) and other arenas have already taken its toll on the Fed with a deficit that grows ever deeper. Recovery will happen when the liquidity of the Fed is again replaced by private liquidity and that would be the best case scenario for all of us.

Along with foreigners, second home buyers are going for condos for their vacation housing needs than investing in the local housing market. This is only one of the few sectors isn’t he housing industry that has managed to maintain a steady if not rising amount of sales and these properties are going strong. Martha’s Vineyard has taken up the call and others are following suit. Out with luxury hotels and lavish furnishings and in with modest condo’s, some of which are indeed well worth the money put into them. They even outpace the single vacation home sales market in terms of movement. People who are fed up of the financial turmoil are turning their sights to their retirement as they want to get out more and more to prevent the issues in the economy from bugging them all the time. This shows a shift in the previously work-oriented workforce, not only in the US but in the UK as well where Brit’s are preferring to go out more often on short trips more often.

Seems the economy is on the move, ever so slightly with development spending on the move in spite of the recession. many of the development projects that were put on hold due to the collapse of the housing market are again getting built but on a more cautious note. Life has become harder yet people are getting on with their lives and developers are doing the same seeing that they would be losing more should they choose to abandon them. (more…)