Tough times and how to get through it

Unless you have been living under a rock for the past 4 months you know that our economy is depressing into shambles and we are officially in a recession. Money is shooting out of the pockets of the population and unemployment is steps away from double digits. Barack Obama promised the people that with his recovery plan worth close to 800 billion dollars, the country would improve and more and more jobs will be created. He specifically said that if his plan didn't go through our unemployment could reach 10%. Well the bill passed and 10% unemployment here we come. In an interview Vice President Joe Bidden said that the president and his staff underestimated the severity of the recession and implied that more government spending is the only way to get out of it. As if 800 billion wasn't enough - we have to let this play out but being someone that voted for Obama, I put my faith in his ability for 4 years and i need to support him. I believe his approach to this recession has been to ideoligical and socialist in approach.

Enough about politics -- the good stuff -- Real Estate.

The largest expense people have is where they live, and in tough times where someone lives and how they live is the best way to stay above. Millions of people who were given un-warranted loans for homes are realizing they cannot afford there mortgage payments and are looking to sell. But, the price they need to sell the house at to pay off their mortage is much less than the price people are willing to buy the house at. This has led to the largest inventory of residential real estate available in a real long time. The only way to sell a property now is to cut your losses and take a very low offer.

It will be tough for home owners with mortgages, but for everyone else that resisted temptation and has been renting - Congratulations. You are in the best rental market in decades. In Manhattan 1 bed room apartments that were renting for $2,500 last year are now renting for $1750. Dive in, just take a look at apartments for rent in New York City click on knowledge base -> current market statistics to see for your self. Neighborhoods like the West Village which for the past decade has been reserved to the financial elites has suddenly become affordable.

The other thing about New York City's residential real estate situation is the borough shift. Previously people that could not afford to live on Manhattan but still desired the New York City vibe people would move to Brooklyn, Queens, Long Island, Staten Island, The Bronx, or New Jersey because transportation was cheap as well as property value. Now those individuals that have managed to hold on to their jobs are moving back to the city. The outer boroughs are getting hit hard as rental inventory is through the roof while Manhattan has held its ground compared to the others.

Just something to consider before you make your next move.