No bank to bank lending means many fewer mortgages. Less buying power in the market will lead to lower prices. It's that whole supply and demand thing.
I can't recall the last time I saw four homes for sale for under $30,000 in Green Bay.
Dives all, perhaps. But $22,000 is in the range where a family bringing in a living wage who also has one handy adult can save up and buy a place for cash and then fix it up as they live there. It's hard to cut spending or take on a second job but if you do the rewards of living in a paid-for home are worth it. If you are any good, $30,000 is less than 400 nights delivering pizza. Fewer if you only work the busy nights. Is giving up your evenings in the short term worth it if you end up owning your own place free and clear? Imagine, no more rent or house payments-- just keep the place up and pay the taxes.
Someone reminded me the other day of something I've heard many times before, that the Chinese language uses the same written symbol to mean both "crisis" and "opportunity". In some ways I hope I'm wrong but I don't see this housing "opportunity" ending tomorrow. If you are renting, I hope YOU will get started today figuring out how to pay off your debts, save a down payment, and give this crisis a silver lining!
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