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Well the wild ride continues … and looks to have gotten even wilder than imagined. This is being written as the ink is still drying on the $700 billion Federal "Bailout" or "Rescue" plan. The Fed and the Treasury Department are setting lots of parts and pieces into motion designed to bring some greater stability to financial markets and at the same time, encourage credit providers, including those in the business of providing residential mortgages
 
Only time and patience will tell if these remedies will work their magic on Wall Street and Main Street. Of course it’s important to recognize that one of the most significant factors will be the impact on consumer confidence as it relates to general consumer spending as well as interest in moving back into the real estate market.
 
While many facets of the economy have weakened in this third quarter of 2008, GDP is still running at a surprisingly "respectable pace" according to David Seiders, Chief Economist for the National Association of Home Builders. The primary challenges that remain include a tightening of credit availability, existing inventory, and the continuing impact of foreclosure properties in the market.
 
At the same time, our conversations with Certified New Home Specialists in many markets indicate positives in contrast to the hardest-hit areas. In spite of the dark clouds, more are calling their markets "fair" or "good" in contrast to more negativity earlier this year.
 
Seiders points to numerous economic factors that have deteriorated, but concludes: "However, there is good news ― most of the projected decline is behind us, and the growth potential from the cyclical trough is immense."