Tonight's panel included Rep. Maxine Waters (D-CA) who is serving her 10th term in office. Among the interesting insights into the current state of the economy and the bailouts, Waters commented that "Americans have no idea how bad things really are." If that wasn't depressing enough, Maher pointed out that the housing market in Detroit is the worst in the nation. The motor city represents more than just a segment of the U.S. population - it stands for American ingenuity, pride, commerce, and manufacturing. According to Maher, the average home in Motown is going for $16,000 and the city is a "Ghost Town."
I was in such disbelief, assumed he was exaggerating, and I did some research of my own. A year ago, eFinance was already talking about the "Housing Market Nighmare" in Detroit. In June '08 the average Detroit home was going for $20,000 and by December, the average was down to $18,500. Now, according to the Chicago Tribune, the average rate is $7,500 - much lower than Maher's dismal report.
In August, a woman bought a Detroit home as an investment property and paid only $1.00 . That's ONE dollar! I suppose, if she had held out a bit longer, she could have gotten it for half that price!
The only thing I find spookier than a ghost town is the frightening state of the economy. The economy is baaaaad but we can't go getting our woolen undies in a twist. We can't panic, we can't quit spending and we certainly can't run from the problem. Instead, we need to be educated about trends, be aware of the issues and make sensible decisions for a stronger future.