Is It Real or just Hype?

The word is out and the pundits have been pounding you for month's. If you have been paying the slighest bit of attention, then you've heard the mortgage business is dead in the water. It is not true my friend! Have some players in the mortgage industry gone out of business? You bet they have. Has the mortgage industry toppled over as a result? Hardly!It all comes down to greed. Always has, always will. It always comes down to affordibility. I guess another way to say it, is it all comes down to cash! Money! Moola! Dinero! King of the Mountain! Mounds of cash, piled as high as the sky! I think you catch my drift. We didn't get to where we are over night. Where are we anyway? There are those out there that say this "sub-prime meltdown" will throw us into the biggest financial fiasco of all time. The year 2005 will be remembered as the year when the "grim reaper of housing " first appeared on the scene. Did anyone notice? I think not. The builders, speculators, flippers, and other "players" were way too busy stuffing their pockets with cash, to even see him.The "players" failed to sense the faucet would soon be turned off. It happened over night. Not everywhere. The biggest downturns came where most of the hottest markets had been. Double digit appreciation became a memory. Everyone was affected and will be for years. There is no reason to worry though, as the playing field is still there. The people that turned real estate into a shell game are gone.I like to refer to this downturn in housing as the "crash of cash." Is there a downturn? If you are a seller, yes you think there is. If you are a buyer, you see no downturn, you see a leveling of the playing field. It all comes down to physics my friend. You know that age old adage " for every action there is a reaction."The market will always dictate the price a commodity will be bought or sold for. When the price of a house gets to where the buyer can afford it, a sale will happen, a mortgage will be made. It will be made to a buyer that is able to obtain it by good standards in place. As for the builders, speculators, investors, and others, many fell off the Merry Go Round. You see, we really did learn all we need to know in kindergarten.