The sad truth is that it isn’t even the equity loss, but the large droves of Realtors, mortgage brokers, etc. who aren’t spending any more. Lets not forget what a whopping percentage of our local economy is real estate / construction driven. These people wash their cars way more often, get their nails done way more often, haircuts, cosmetic surgery, lattes, car buying, house investments, etc. than any other part of our economy.
When times were off the charts increase-wise, they were the ones buying the new Mercedes every 2 years, and the huge homes, as well as a good chunk of the investment flipping properties.
I know a few of these people, and play poker with some of the brokers / construction / real estate agents. Their games are getting way worse, they alternate between very conservative play, to desperation bluffs all to try to make some money and get the endorphines flowing. All in all they are losing money to me and some other more stable individuals at the tables in a desperate plea for some type of satisfaction.
I no longer talk about housing around the poker table, these people are shredded and on the edge!
