Housing Boom or Bust?

Broome County is finally facing the reality of the future of our local economy.  Like most communities, we are affected by rising taxes, high unemployment and a host of other dimful economic news.   Lockheed and other employers are expecting layoffs and Binghamton University has a hiring freeze.  Meanwhile, our state legislature continues to stall and add plenty of pork to the menu!

How will this affect our local housing market?  It’s already doing so!  Housing inventory has increased, prices are falling and the upper end of our our housing market is flat.  It’s truly a buyer’s market, but when will the good news return for homesellers?  It’s anybody’s guess, but my prediction is not soon enough.  We will probably be in a slump for many months.   The mortgage crisis and fluctuating stock market will continue to sort itself out.

Basic ecomomics teaches us that things go in cycles.  But the cycle of a strong housing market may be sometime to come.  We will need to reduce taxes, create jobs, clean up our streets and get the economy moving again.  Consumer confidence will have to increase.  What’s your opinion?  Seems like we are returning to the basics:  Shelter, Food, Health Insurance, Transportation, Utilities, Taxes and Education.  What’s left in people’s budget for cars, luxury items, jewelry and vacations?

Don’t worry, the grass is always greener elsewhere and with all the rain we are getting lately, one part of our economy is sure to grow - landscaping!  We must all work together if we expect to see brighter days ahead.