A couple of days ago I wrote about my hope that due to a decrease in foreclosure rates here in North Carolina we are actually a leading indicator that the nation's economy has hit bottom. My friend Dan called me a pie-eyed optimist as a result. I did temper my post with the news that home sales in Greensboro were down 38% in February from same month sales the year before, so I wasn't real shocked when I read today that Winston-Salem's home sales in February were down 30% from the year before. Average home prices were also down, but given the number of foreclosures on the market that's not exactly a shock either.
So, am I still standing with my pie-eyed optimism? Why yes I am. My hope is that:
- Foreclosures have peaked
- Our glutted housing inventory will start to clear
- House prices will stabilize (normalize)
- By some miracle the government's plan for the banks works (longest shot of all) and even if it doesn't that the "free markets" actually work the way they're supposed to and that we get through the painful period sooner rather than later.
- By some miracle the financial industry learns its lesson and starts acting like, well, like what we used to think bankers acted like.
- Americans continue with their newly-found frugality, but at the same time begin to emerge from their monastic existence of the last six months and begin to buy things within reason (and their budgets).
- American companies begin hiring people once their businesses have stabilized and that the companies subsequently treat their employees well and perhaps think about spending a little less on executive "talent" and a little more on employee and customer satisfaction.
- By some miracle I can retire before the age of 97 and live in a society where my grandchildren at least have the same standard of living that their great-grandparents and grandparents enjoyed. Asking for them to have a better standard might be a bit much at this point.
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Befuddled 
That is quite a few “by some miracles.” Hey, I’m hoping right there with you 🙂