I think that what we are seeing depends totally on what geographic location we are in.
Property values in Southwestern New Mexico have not taken a landslide crash as in some parts of the country. In fact some types of property are in fact escalating and at higher percentage rates than I would have expected.
The problem is that properties for sale are remaining on the market a great deal longer because under current banking rules, financing of home purchases is difficult even with better than average credit.
The main thing that makes me wonder on the economy however is the monstrous numbers of Recreational Vehicles on the road. Here in Deming, New Mexico both the Wal-Mart and Big-K parking lots have tons of RV's on them at night. Seniors and others are traveling and this is taking place in numbers that have really surprised me.
People who live on fixed incomes tend to be extremely conservative in their travels when the economy is bad. Travel is in fact one of the first things cut from the budget.
The local RV parks are totally full for this season and the "snowbirds" who travel from colder climates down here for the Winter are here in record numbers. Only one park in this area has shown a drop in traffic. This same park instituted a considerable raise in their seasonal rates this year, so that may be the one and only reason.
I do see improvement, but the improvement here is offset by additional damage taking place in some other locations. The Palm Springs area of Southern California is being totally destroyed. The City of Desert Hot Springs has a foreclosure rate that is totally incredible and the homes have in many cases lost more than 50% of their peak value. We have friends who owned multiple rentals and they are no longer able to obtain rents for those properties that equal or exceed the payments because of the value loss. The rentals they owned were view properties which were all renting for $1,500 per month or more. They are now unable to get $650 and have a tenant stay and actually pay the rent.
I also understand that Michigan is really bad. Other friends in parts of Arizona are doing OK. Some parts have hit bottom and are in recovery, but it is sadly not Nation wide yet. Any area that depends on luxury resort money is way off and it will be a challenge to see if these high end resorts are able to survive and recover.
I really do not think that we can consider what we are seeing the beginning of a full recovery yet. I think that I see the seeds of a "turn-around", but seeds are not yet a real nationwide marker.............