Trouble in Paradise

Everyone is aware of the economic crunch that the country is currently undergoing. It is the same one that we have been battling for the last few years, even though people claim that things are getting better. Whether or not that is true is debatable, but that isn't really what I want to talk about. The housing market was probably one of the ones hit the hardest and a lot of our problems are their and the banks fault so I found it interesting that when I turned on my computer this evening and MSN popped up one of their headlining articles was "Hard Times in Paradise." This article addressed how the crash in the housing market was finally getting around to effect the elite and the wealthy.
Personally I find it to be a rather sad story, although after reading some other peoples thoughts they sort of view it as justice. Long story short is that that many of theses very expensive and custom build homes that survived the initial crash are at risk of forclosure. The article looked specifically at Paradise Valley in Arizona. It is a place that many of us would consider comparable to Beverly Hills, a town with about 7,700 homes to people like Muhammad Ali, Alice Cooper, Dan Quayle, Mike Tyson and Peter Sperling.
In 2008 only 38 homes were foreclosed on, but by late 2009 that number had nearly tripled to 114 foreclosures and an additional 315 notices. These people who had lived lives of luxury and managed to hold on for so long are finally running out of luck and their savings. This hasn't just effected the families living in these mansions but also the men that build them. One contractor said that 12 of his custom projects for these multimillion dollar homes had been scrapped and others just barely finished at huge price reductions. A good example is of this house on Foothills Manor that boasts a guest house, Master Bedroom with setting room and a full Irish Bar but no floors, landscaping, or kitchen countertops. The days of the 9,000 square foot mansion are over.
The only good news is that if you can find the money to finance a house like this then you are going to get a killer deal. Houses like this one on Butler Drive were originally listed for $6.5 million or more and are selling for 2 to 3 million. If you are feeling like moving up in the world now is the time.
My concern is obviously not just for the families and useless elaborate communities but also for our country and economy. This isn't just a sign that the frivolous spending is bad but also that people who once had very secure jobs and income are also being laid off. When and how are we going to pull out of this housing downfall and figure out how to get back on our feet and make owning your own home a realistic option. For me it will still be a few years before I have to deal with the banks and the housing market but at the rate we are going there is no guarantee that one day I'll be able to say this is my house I managed to finance it and pay it off.