“OK, WHAT’S IT ALL MEAN TO ME, I PAY MY MORTGAGE ON TIME.”

american-doaalar.jpg Greed, how many times have we seen it happen? Brokers and Lenders greed. Homeowners betting that appreciation will exceed their wildest dreams. What’s that phrase? “If it sounds to good to be true’? I spent 15 years in the corporate mortgage business before moving in 2001 to residential real estate in Contra Costa and Solano Counties. I saw good loans being done for people that understood the process and I saw loans created for people that had never seen the cycles of a commodity like real estate. If you’re under 30 years old there’s a very good chance you have never seen anything less that double digit appreciation on the 680 corridor.

We had a hiccough in the San Francisco Bay Area real estate the early 1990’s, but that was nothing compared to the lack of bank liquidity that’s happen in the past few months. So, what does it mean to you, the guy that has a 6% fixed rate mortgage? It will mean we probably won’t have to wait for a table in restaurants like Piatti’s in Danville or Monticatini’s in Walnut Creek. Nordstrom’s won’t be out of size 11 Feragamo shoes. Real estate or mortgage people are spenders. Walnut Creek Mercedes may come off the sticker price. Consumer spending in Contra Costa County will be affected. Lack of liquidity and diminished consumer spending can slow down a local economy. We have enjoyed tremendous growth locally. In the long run, those of us who live on the 680 corridor will be fine. We have good schools. Our businesses are very diverse; finance, real estate, technology, awesome retail and many other sectors. Walnut Creek is headquarters for many international corporations. BART has proven to draw business and homeowners to our Counties. How long will it be this way? I don’t know, but there is no quick fix. “Keep your Powder Dry.”