I sit here like a lot of
interior designers and
interior decorators wondering how we are going to keep our businesses alive. With the housing crisis taking place around the country and here in San Diego, I just sit here and try to be positive but the news about housing is negative, foreclosures are up, sales at Home Depot and Lowe's are down and the only people who can buy a house is with cash. Our industry is in crisis. It's not just the interior designers, but the manufacturers of furniture, wallpaper, contractors, architects, artists, et. al. CNBC and their guests talk about the housing turn around in 18 months. How many of the above people can wait for 18 months. Most are small businesses- the backbone of the the American Economy.
What really bothers me is that the federal government has bailed out the banking system to the tune of $700 billion. I think it was a great idea but it was put together so fast that the ramifications were not thought about. We are only now seeing the results of this.
What have I noticed in San Diego? The banks are hoarding the money and are not willing to loan. It doesn't matter if it's for a car or a house. Credit cards have lowered their amounts they are willing to lend their clients. Contractors are hungry for work, so are painters, electricians, architects, realtors, etc.
A bank doesn't want to lend on a house because it may be worth less than the loan amount. People are letting their houses fall into disrepair and doing short sales or foreclosures.
Ok, this is all the negative news. Let me talk about the opportunites in this crisis.
This is the perfect time for the government to step in and help stabilize home prices. 90% of the loans are owned by Freddie Mac and Fannie Mae. I would put some teeth in the $700 billion and tell the banks, we gave you the money to loan not to hoard. It doesn't help anyone.
We need to create confidence is buying a home is a worthwhile investment- you need to live somewhere and if you own where you live, you take care of it.
We need a Public Relations Campaign from the FDIC and the Federal Government that owning your home is a source of pride. Part of the campaign is that is it ok make your house a home and you are not wasting your money in doing so.
I really think its time for the Federal Government to help everyone feel proud to own a home again and the industry between interior designers to furniture manufacturers will not only keep their employees off unemployment due to lack of sales.
It is the chance of the Gen X and Gen Y that change is good- so let's do it!
