August 25, 2010 
I have been giving lots of thought to the housing market the past week and just why we should be concerned about it’s highs and lows. Last month the housing market crashed with existing home sale at a 15 year low and new home sales at an all time low. As I pondered I considered why houses are not selling. Some are upside down on their mortgage which means they are stuck. Even those who are ready and needing to move up can’t. Those who are ready and willing to downsize can’t. Then there are those who are ready to buy for the first time. They have the opportunity of a lifetime to buy low but with the job market in a stall and banks more cautious than ever they can’t qualify for loans or unwilling to take the risk. There are plenty of foreclosures but those often need expensive repairs as the former owners have taken fixtures and appliances or just because an empty home creates lots of problems quickly due to lack of attention when problem is small.
Why should the housing market be a concern? The obvious answer .is the construction industry. There are no job. Even those with homes are not investing in improvements. Who wants to invest in a property if you may never get the expense back out? Those workers are not shopping the way they were so, restaurants and retailers suffer. Those who supply parts and building materials are cutting back on workers because orders are down. Now those workers are not eating out or spending. Appliance manufacturers are not selling appliances because there is little building and little remodeling. Now those employees are not spending. No building means less income to school districts who charge fees for new building. That adds to the problem of no new students moving into the district and in lots of areas shrinking class sizes which means less money coming in from the state…..When will this end? I have no idea. When will people feel confident to invest again and not worry that the property they are buying could be worth less in a few months? I have no idea.
Last week I asked for your suggestions for a reader who is struggling with some serious financial challenges. I really appreciate all you suggestions and I’m sure she does also. What do you do when you have tried all those things? You have cut your bills, don’t have a cell phone, don’t have cable, don’t eat out, eat mostly rice and beans or breakfast foods for dinner and you bike to work? It’s tough, especially if you don’t have a good support group of family, friends and your church. I am grateful I have that support but I realize some do not.
All this reflection made me think again about earning more money. If we can’t save any more how can we earn more? I have found it to be impossible to hire a teenager to mow my lawns. Really! I can not believe it but the kids don’t want to work. Boy, do they have a wake up call coming and will they ever be angry with their parents when they realize they have been cheated out of the opportunity to learn to work and budget. This does leave an opening in my area for the unemployed or under employed. Moms and dads could fill the void and pick up a little extra money. There are other opportunities.
My 12 year old grandson has decided he loves to bake. His mom belongs to a yahoo group with her friends in the area and he decided to send out a notice that he was baking that week. He listed the items that could be ordered with their prices. The next Saturday he and mom baked all day and delivered the goods . After paying for the ingredients he made $25.00. Everyone purchases bread and with bread at $3.00 a loaf or more wouldn’t you be willing to pay $3.00 for homemade bread? The same is true of birthday cakes. They cost a fortune and the grocery store variety taste awful. Wouldn’t you rather purchase one at the same price or even a little more, that tasted great?
So what could you do to make extra money? I opened an ETSY store and that was a disaster! I tried….I do have lots of great baby gifts now for future showers. I know others who are making on line stores work but it just wasn’t meant to be for me.
I would like to know what you are doing or what friends have done. Please share your ideas. Baking bread may not be the answer for you, but it may. Mowing lawns may not work, but it may. Let’s throw out some ideas and maybe we can help someone who is struggling discover a solution that will work for them.
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