If you think the housing crisis won't affect your area...

[CoffeeCat]

...then you're thinking like I did.

I've watched the coverage of the housing crisis, and figured that my area of the
country would be immune from severe damage. After all, I don't live in Southern
California, Las Vegas or along the Florida coast.

I live in the Midwest--in Iowa. Not exactly a bastion of house flipping. We tend to buck
the trends that deeply impact coastal areas and larger cities.

I thought that my state of Iowa might notice houses moving a little slower.
I felt terrible for all those people with all of those foreclosure signs out
front--but I just didn't think this crisis would reach into the breadbasket
of the world--and reach so deeply.

Today, it was announced that Regency Homes, Iowa's largest homebuilder has
laid off all of its employees. Yes, all employees. Except for a few
executives, who are going to try to salvage something--every employee of Iowa's
largest builder of homes--has been told that they no longer have a job.

No one is left.

Obviously, if Regency is now defunct--other area companies will be affected. By
how much we don't know, but the banks that serviced Regency and contractors
will undoubtedly be impacted. Three hundred Regency homes sit in various
stages of construction--unfinished.

When the reporters were here covering the caucuses, we heard over and over about how
gracious, kind and conservative Iowans are. We are not trend setters. For the most
part, we're just salt-of-the-Earth good people. This is a relatively conservative, educated
state. Regency's corporate headquarters were located in Des Moines--a city in which the largest
employers are in the banking, financial services and insurance industries. People here
are pretty financially savvy--with so many working in jobs that require this knowledge.

If you think the housing crisis won't impact your state or your city or town--think again.
This crisis won't going to discriminate geographically.

If it can happen in Des Moines, Iowa--it can happen anywhere.

Links to stories about Regency;
http://www.kcci.com/news/15998485/detail.html
http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=/20080425/BUSINESS/80425051

[Orwellian_Ghost]

1. K&R n/t

[Arctic Dave]

2. In Anchorage we have the local real estate companies telling us

that all is good, remain calm. Everytime I see someone do that it reminds me of Animal House when they cause havoc at the parade.

[Double T]

3. The American Empire has FAILED and is FINISHED and our true economy is in ruins.

NO ONE will escape the affects of the housing meltdown and financial crisis; the sooner WE accept our fate and reality, the sooner WE can start building a much different NEW NATION. Send every incumbent politician a message and vote THEM ALL OUT!!!!

[JDPriestly]

7. The housing boom was created intentionally to make the Bush regime look good.

Almost immediately upon Bush's taking office, the dot com boom busted and the stock market and NASDQ averages precipitously. At the same time, factories which had begun to close during the Clinton era, began to close at an even faster rate. Wages began to stagnate. Fearing the backlash against the Bush administration that economic misery would cause, Greenspan stimulated the economy by lowering interest rates. The banks were flush with money to lend. Consumers wanted housing, but could not qualify to buy them at conventional rates, and so mortgage companies developed creative loan structures just to sell mortgages. The rest is history.

Greenspan resigned just in time to avoid the task of fixing the damage to our economy that he caused.

We need top to bottom reform in government. It's time to shake up the Congress -- elect new people with new ideas, people who haven't sold their souls to big business -- yet. Encourage qualified, new, progressive candidates to run and let's support them here on DU as much as we possibly can. This crisis is going to take dedication, new ideas and courage. The current Congress is not up to the job. They are defeatist and trapped in old ways of looking at the world.

[crispini]

4. The thing to remember is that

in a study of selected cities, houses that are close in to the center city or on transportation are maintaining their value.

New homes that are out in the farthest burbs are not being build and are being foreclosed on, but areas that are more desirable due to the ever-increasing price of gas are staying strong.

We're about to see the de-suburbanization of America. This is going to be interesting.

[Horse with no Name]

5. I agree

I was in Paris the other day.
The old run down houses downtown were being cleaned up. You could have probably bought these homes for under $30k a year or two ago.
Part of the old downtown area has been gentrified already...I'm guessing that these old antebellum homes are next on the list.

[JDPriestly]

8. We live about 5 miles from downtown L.A.

Our area was really bad when we moved in -- the only place we could afford to buy with a GI loan and no money down. There have been foreclosures, but eventually properties sell. The problem is that people cannot qualify for loans. Incomes have not risen enough to match the rise in housing prices, gas, or even food. Too much supply side economics. Balance between supply and demand should be the goal. Capital investment is just one factor in a healthy economy. You have to have healthy wages too. That is why McCain's economic strategies are doomed to fail. The current crisis will get much worse if McCain is elected.

[Cresent City Kid]

6. Tell me about it

After moving to San Antonio, I found a job in land surveying. San Antonio, and the state of Texas are quickly growing, and we were staking out large subdivisions. When the housing crisis hit the news, I wasn't too concerned at first, figuring Texas was as you put it, immune. 4 months later, I'm unemployed as our work slowed to nothing.

[Breeze54]

9. Anyone thinking that has their head in the sand...

and now it's also effecting renters and the rental market.

[AlCzervik]

10. i don't know anyone who thinks the housing crisis won't affect them.

i live in one of the worst hit areas.