Where to live? The American dream of home ownership took a 90-degree turn starting with the housing crisis and the subprime debacle. During the days of liberal lending, virtually anyone could get a home loan. This fueled a run up in home prices that eventually lead to a crash. The fix to this crisis wound up being a combination of time and low mortgage rates. In many parts of the country a full recovery in home prices has occurred yet what is the current state that surrounds a consumer’s choice of where to live?
The engine for sustainable growth has always been the ability to lend and to borrow money. The banking crisis from the perspective of the market may be a rear-view mirror event, especially if seen through the lens of a fully recovered stock market, but the lending landscape in 2014 remains markedly different to that of 2008. While today there are dramatic differences in lending practices,the ability to obtain credit to grow a business still exist. One area that has dramatically changed is the lending practice for residential developers and home builders.